← Back to Blog
NFLX 4-hour chart showing Netflix recovering from its July earnings gap towards the 80.92 moving average

NFLX Stock Forecast: Netflix Rebuilds Towards the 80.92 Line

By Saqib Iqbal2 min read
  • NFLX trades at 77.77, up 2.3% on the session and back near the top of the range it has held since mid-July.
  • Second-quarter revenue of $12.56 billion slightly missed, EPS of $0.80 beat, and third-quarter guidance came in below consensus on both lines.
  • The 80.92 moving average is the last barrier between this recovery and a full retracement of the earnings gap.

Fundamental Analysis: NFLX

Netflix delivered a mixed quarter. Revenue of $12.56 billion grew roughly 13% but came in a touch light against consensus, while earnings of $0.80 a share beat. Profitability remains the strong suit: management reaffirmed a 31.5% full-year operating margin target and guided third-quarter margins to the low 32–33% range, numbers few streaming peers can approach.

The problem is what comes next and what investors will be allowed to see. Third-quarter guidance of $12.86 billion in revenue and $0.82 in earnings sits modestly below Street forecasts of roughly $13.0 billion and $0.84. More pointedly, the company will cut its viewing-hours disclosure from twice a year to once annually from January 2027, which reduces the evidence available to test the engagement story just as growth decelerates.

The advertising build is the swing factor, with management targeting $3 billion of ad revenue this year. If that lands, slower subscription growth matters less. If it does not, a business guiding to low-teens revenue growth with reduced transparency is a harder sell — and that uncertainty is what the summer range has been pricing.

Technical Analysis: NFLX

image

The structure was set by the mid-July earnings gap, which dropped price from roughly 82 to a 68 low within days. The recovery since has been methodical, grinding higher along a rising average and reaching 78.75 in the latest session before easing to close the four-hour bar at 77.79, with overnight trade at 78.21. The 74.70, 75.84 and 76.29 averages are now stacked beneath price and rising, while 80.92 slopes down from above.

Resistance is the 78.75 session high, then 80.92, and the pre-gap 82 area beyond it. Support is 76.29, then 75.84 and 74.70. A four-hour close below 74.70 would break the recovery sequence and expose 72.00, the level whose loss would invalidate the constructive read entirely.

Market Forecast Hub.

Crypto Forecast Hub

Trading tools

Broker reviews