Netflix - AI Stock Analysis

Analysis generated January 19, 2026

Netflix Inc. is a leading global streaming entertainment service, providing a subscription-based platform offering a vast selection of TV series, documentaries, and feature films across various genres and languages. Founded in 1997, Netflix has transformed from a DVD rental service to a dominant player in the digital content streaming market with an impressive subscriber base worldwide. The company is headquartered in Los Gatos, California, and continues to expand its presence by investing heavily in original content and improving user experience. As of the most recent reports, Netflix has a significant number of new visitors and app downloads, which suggests robust interest and potential for further growth.

Fundamental Analysis

Netflix posted a revenue of $11.5 billion for the last quarter, marking a 3.89% increase compared to the previous quarter and a substantial 17.16% rise year over year. This revenue growth indicates a strong upward trajectory in the company's financial performance. The net income for the last quarter was $2.55 billion, showing an 18.51% decrease from the previous quarter. Despite this drop, there was a 7.76% increase year over year, which is a positive sign but highlights some concerns about quarterly performance volatility.

The EBITDA for the latest quarter stood at $7.37 billion, representing a 4.55% decline from the previous quarter but a year-over-year increase of 10.24%. These figures underline Netflix's capacity to generate earnings before interest, taxes, depreciation, and amortization, emphasizing its profitability. However, the current Price-to-Earnings (P/E) ratio stands at 36.82, which could be considered high. High P/E ratios suggest that the stock might be overvalued, possibly leading to a bearish outlook. Additionally, recent insider selling of Netflix stock reinforces potential bearish sentiment among investors.

Technical Analysis

The current stock price of Netflix stands at $88.00, a 6.77% decrease from a month ago, which might concern short-term investors. However, compared to a year ago, the stock price has increased by 2.55%, indicating a positive long-term trend. Nonetheless, the trend is currently bearish. The Simple Moving Average (SMA10) is $88.73, down from $88.87, suggesting a potential downward trend in price movement. Furthermore, the Relative Strength Index (RSI) is 88.5, signaling an overbought condition and reinforcing bearish sentiment in the short term.

Alternative Data Analysis

Alternative data provides additional insights into Netflix’s market position and prospects. Job postings have increased by 8% in the past few months, signifying potential expansion and growth. Employee sentiment towards the business outlook remains neutral, suggesting stability within the company. Traffic to Netflix’s webpage has seen a significant 20% increase, reaching an estimated 1.61 billion visitors. Moreover, daily mobile app downloads have risen by 21%, indicating growing customer acquisition.

Customer engagement metrics reveal that Netflix's Instagram followers have grown by 5% to 40 million, and Twitter followers have increased by 3% to 25 million over the last few months. This rising social media footprint reflects augmented interest and engagement with the platform. AltIndex's AI score, which integrates fundamental, technical, and alternative data, gives Netflix a score of 64, signaling a buy recommendation.

Conclusion

In conclusion, Netflix presents a mixed but overall positive investment opportunity. The company demonstrates robust revenue growth and a strong user base expansion, as supported by fundamental data. However, recent insider selling and a high P/E ratio may indicate overvaluation and potential bearish outlooks. Technical analysis shows a short-term bearish trend, although the long-term perspective remains slightly positive. Lastly, alternative data highlights increased job postings, website traffic, and social media followers, indicating sustained interest and engagement.

Given the juxtaposition of these insights, potential investors should consider the long-term prospects and growth potential of Netflix while being mindful of short-term fluctuations and insider activity. A thorough evaluation of investment horizons and market conditions is recommended for an informed decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.