Netflix Stock Gets Downgrade With Shares Up 400% In Three Years: 'Expect Rotation Into Other Internet Names'

A Netflix Inc (NASDAQ:NFLX) analyst is downgrading shares of the streaming giant with the stock near all-time highs following first-quarter financial results.

The Netflix Analyst: JPMorgan analyst Doug Anmuth downgraded Netflix stock from Overweight to Neutral and raised the price target from $1,150 to $1,220.

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The Analyst Takeaways: With Netflix stock gaining significantly over the last year, the risk/reward in shares could be more balanced now, Anmuth said in a new investor note.

"To be clear, there's no change to our long-term bullish view on NFLX's streaming leadership position and the company's potential to effectively become global TV over time," Anmuth said.

The analyst said Netflix upside may already be factored into guidance and the summer months are typically slower for the streaming company.

"If tariff & macro concerns continue to ease, we would expect rotation into other Internet names and parts of the market that have been more vulnerable & pressured."

Anmuth recognizes that the downgrade could end up being wrong with Netflix having a strong slate of content for the back half of 2025. The analyst also said Netflix has several drivers, such as pricing power and advertising strength, that could make the 2026 and 2027 estimates higher.

Among the titles coming in the second half of 2025 include the return of the company's three most popular series of all time with new seasons of "Squid Game," "Stranger Things" and "Wednesday."

The analyst said Netflix stock deserves a premium, but investors may have too high of expectations for the second half of 2025.

"Since October 2022, NFLX shares have appreciated nearly 400% — or 5x — compared to the SPX up 60%. We move to the sidelines."

Long-term, Anmuth sees Netflix as one of the leaders in the disruption of linear television.

"With 300M+ global subs, Netflix has a strong leadership position in a rationalizing streaming industry and we expect NFLX to benefit."

NFLX Price Action: Netflix stock is down 0.65% to $1,183.80 on Monday versus a 52-week trading range of $588.43 to $1,196.50. Netflix stock is up 33.9% year-to-date in 2025 and up over 85% in the last year.

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