By Angela Palumbo
Netflix stock has been on a downward spiral, but one Jefferies analyst believes there are multiple catalysts to boost investor sentiment, including social media bans for teens.
Jefferies analyst James Heaney cut his price target on Netflix stock to $110 from $128 on Wednesday. This new price target comes after shares have fallen 12% this year and 32% over the past 12 months.
Netflix is the largest streamer in the world, but some shareholders have been skeptical about the company's future. The stock dropped 10% on April 16 after Netflix reported first-quarter financial results. While earnings and revenue came in better-than-expected, guidance missed the mark.
There have also been ongoing concerns about competition, specifically when it comes to people's viewership time. While Nielsen data show that Netflix is one of the top viewed streaming platforms, short form video content continues to take screen time away.
Netflix has launched its own vertical video content called Clips, which is a feed on a mobile device that shows users short-form videos of different shows and movies on the Netflix platform to help that user decide what they want to watch next. While this fits into the popular short form video category, it is much different from the type of content posted on social media that takes viewership from Netflix.
Heaney believes that Netflix could catch a break from this short form video competition as more countries implement social media bans for teens.
"Bans are already in place in Indonesia, Malaysia, and Australia, with Greece set to follow, while the UK and several European mkts (FR, DK, PL) are moving toward tighter rules," Heaney wrote. "While unlikely to move near-term KPIs [key performance indicators], this could reduce concerns around Gen-Z short-form habit formation and engagement share erosion."
Heaney maintained a Buy rating on the stock, which was up 1.1% on Wednesday to $82.31.
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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June 10, 2026 14:47 ET (18:47 GMT)
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