What's Going On With Netflix Stock?

Netflix Inc (NASDAQ:NFLX) shares are climbing Tuesday. Deutsche Bank turned more bullish on the streaming giant, arguing that Wall Street is underappreciating the company’s international growth. Here’s what you should know. Netflix shares are advancing steadily. Why is NFLX stock trading higher? Deutsche Bank Upgrades Netflix to Buy Deutsche Bank analyst Bryan Kraft upgraded Netflix to Buy from Hold and set a new price target of $95, down from the firm’s prior $100 target. The firm’s updated view stems from the belief that Wall Street is paying too much attention to softer trends in the domestic market and not enough attention to Netflix’s performance abroad. According to Kraft, engagement across the company’s international audience has continued to improve, showing that growth remains alive in markets beyond the U.S. Netflix has also transformed itself into a far more global content business. Most of the company’s programming is now produced outside the United States, a shift Kraft believes strengthens Netflix’s reach, broadens its content offering and further separates the company from competing streaming platforms. Kraft argued the stock’s valuation has reset dramatically. Shares now change hands at roughly 18 times estimated 2027 earnings, versus around 40 times forward earnings when Netflix reached its 2025 peak. In the analyst’s view, the market has slashed the company’s valuation far more aggressively than its growth prospects, creating an opportunity for investors willing to look past near-term concerns. The analyst also sees artificial intelligence as a potential advantage rather than a disruption risk. Deutsche Bank expects Netflix to deploy AI across several parts of its business, including content development, viewer discovery tools and advertising operations, which could improve both efficiency and user engagement. Why The Firm Still Sees Risks Kraft did not dismiss the challenges facing Netflix. Deutsche Bank reduced several financial forecasts following the company’s latest quarterly report and acknowledged that expansion has slowed from the rapid pace seen in earlier years. Even so, the analyst believes those concerns are already embedded in the stock price. As a result, Deutsche Bank views Netflix’s global scale, international growth trajectory, technology leadership and valuation as outweighing the risks at current levels. NFLX Shares Are Rising NFLX Price Action: Netflix shares were up 2.21% at $70.77 at the time of publication on Tuesday, according to Benzinga Pro. Read Also: What's Up With the Jump in Bloom Energy Stock? Image: Elliott Cowand Jr/Shutterstock