Morgan Stanley Cuts Netflix (NFLX) Price Target to $77

Morgan Stanley reaffirmed its Overweight rating on Netflix, Inc. (NasdaqGS: NFLX) on October 21, 2026, while lowering its price target from $80.00 to $77.00. According to the research note, the firm chose to keep its positive stance on the streaming company despite adjusting its expected target downward. Netflix closed at $68.69 on October 20, 2026.

NFLX Netflix, Inc.

$68.69 ▼ -24.51% year to date

1M 3M YTD

Daily close · Oct 20, 2026

Morgan Stanley's Call on Netflix

On October 21, 2026, Morgan Stanley issued its updated view on Netflix, maintaining an Overweight rating while reducing the price target to $77.00 from $80.00. The change follows broader adjustments across Wall Street as analysts recalibrate expectations for the entertainment provider.

Netflix, Inc. Stock Down 7.8%

Netflix shares recently traded around $65.77 on October 21, 2026, down about 4.3% from the previous close of $68.69. The stock is currently sitting below its 50-day moving average of $75.01 and well below its 52-week high of $124.86.

Recent Earnings

Netflix posted trailing twelve-month revenue of $48.37 billion alongside earnings of $3.18 per share. The company reported a net profit margin of 28.2% and a return on equity of 49.5%.

Insider Buying and Selling at Netflix, Inc.

Company insiders completed several share sales over the summer and early fall. Chief Executive Officer Gregory K. Peters sold 27,312 shares on August 6, 2026, at an average price of $73.54 for a total value of $2,008,606. Chief Financial Officer Spencer Adam Neumann sold 9,248 shares on August 10, 2026, at an average price of $75.79 for a total of $700,907. Director Richard N Barton also sold 720 shares on September 8, 2026, at $77.60, followed by another sale of 1,440 shares on September 10, 2026, worth $109,102.

Analysts Set New Price Targets

Several other Wall Street firms updated their views on Netflix on October 21, 2026. Oppenheimer maintained its Outperform rating while lowering its target from $85.00 to $80.00. JP Morgan maintained its Overweight rating and trimmed its target from $85.00 to $81.00. TD Cowen reiterated a Buy rating with an unchanged target of $100.00. Piper Sandler kept an Overweight rating while cutting its target from $85.00 to $78.00. Overall, the stock holds a consensus Buy rating with a mean price target of $91.13 across 45 analyst opinions.

About Netflix

Netflix, Inc. operates as a global entertainment service provider, offering television series, documentaries, feature films, games, and live programming. Members stream content across a wide array of internet-connected devices, including mobile phones, tablets, and smart TVs. Founded in 1997, the company is headquartered in Los Gatos, California.

Bottom Line

Morgan Stanley's decision to lower its price target while keeping an Overweight rating shows continued confidence in the streaming platform despite recent share price pressure. Investors will monitor upcoming earnings reports and analyst revisions to see if shares can recover toward consensus targets.