Market to have ‘muted to positive’ reaction to Netflix Q3, says Goldman Sachs

Goldman Sachs keeps a Neutral rating and $705 price target on Netflix (NFLX), also noting that the market will likely have a “muted to positive reaction” to its Q3 earnings. The quarter’s key takeaways were that overall revenue slightly exceeded consensus estimates, operating margin handily outperformed, and net adds came in below Goldman’s forecasts, the analyst tells investors in a research note. In framing its 2025 guidance, Netflix also made a few key points in its shareholder letter that included an expectation of solid revenue and profit growth by improving its core series/film offering and investing in ads and gaming, the firm added.