Netflix Valuation Looks Compelling, Morgan Stanley Says -- Market Talk

Dow Jones04-17

0835 ET - Netflix slumps 10% premarket, which Morgan Stanley primarily attributes to the company's 2Q guide and lack of a FY26 raise. "We think these are explained by the timing of U.S. price hikes (typically taking 2-3 months to filter through, while lapping last year's increase) and some conservatism early in the year," the analysts say in a research note, advising investors to buy the dip. While they expect debates around engagement to continue, the analysts say it was encouraging that 1Q view hours were up at a similar rate of growth as in 2H25, considering the recent period saw 17 days of robust streaming competition from the Winter Olympics on Peacock/NBC. At the same time, Netflix's advertising business continues to ramp, with no signs of macro weakness, they add. (connor.hart@wsj.com)

(END) Dow Jones Newswires

April 17, 2026 08:35 ET (12:35 GMT)

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