Overview

• JPMorgan downgraded Netflix shares from 'Overweight' to 'Neutral' while raising the price target to $1,220, reflecting a more balanced risk-reward outlook.
• Netflix shares have surged 34% year-to-date and 86% year-over-year, reaching record highs before a 1.75% premarket dip to $1,170.67 on Monday.
• Analysts highlighted that Netflix's shares trade at 39 times forecast 2026 earnings, signaling limited near-term upside despite strong performance.
• Seasonal slowdowns in the summer months and historically challenging second quarters are expected to temper Netflix's momentum.
• JPMorgan maintains a bullish long-term view of Netflix's potential to lead global streaming, despite short-term valuation pressures.