Netflix shares recover following analyst upgrades and new investment

Netflix shares have seen a notable recovery following a significant decline from their 2025 peak. The stock rose 2.84 percent to 82.28 dollars on Tuesday, supported by positive analyst sentiment.

Wolfe Research maintained an ‘Outperform’ rating and increased its price target from 84 to 95 dollars. Analyst Peter Supino attributed recent fluctuations in subscriber and engagement numbers to the timing of new releases rather than structural business weaknesses. Despite earlier concerns regarding annual revenue guidance, the company reported a 13 percent increase in second-quarter revenue to 12.6 billion dollars, with an operating margin exceeding 33 percent.

Adding to the positive momentum, Bill Ackman’s Pershing Square Capital reported a new position of 3.15 million shares, representing 4.9 percent of the fund’s portfolio.