Netflix Inc (NASDAQ:NFLX) shares are trading higher on Tuesday, extending a recent rebound as the stock works to reclaim key moving averages. Here’s what you should know.
- Netflix stock is surging to new heights today. What’s driving NFLX stock higher?
Netflix Reclaims Short-Term Averages, but Longer-Term Trend Looms
Netflix shares sit 7% above their 20-day moving average of $73.72 and 5.6% above their 50-day average of $74.66, a sign the stock’s near-term trend has improved since its low in July.
On the other hand, Netflix remains 5.5% below its 100-day moving average of $83.39 and 11.3% below its 200-day average of $88.88. Netflix will need to push back above key longer-term averages before the rebound can be considered a genuine trend change rather than a bounce within a larger downtrend.
Despite that longer-term overhang, Netflix shares have climbed close to 15% over the past month, adding to the case that buyers have started stepping back in since the summer low and suggesting the bottom could be in. A move above the longer-term moving averages would help the case for bulls.
Billionaire investor Bill Ackman disclosed last week that Pershing Square Capital Management has built a fresh 3.15 million-share stake in Netflix, now equal to 4.9% of the firm’s portfolio. It’s a notable about-face for Ackman, whose firm poured more than $1 billion into Netflix back in 2022 only to walk away with a loss north of $400 million after subscriber growth stalled out for the first time in years.
Pershing Square laid out its updated thinking in an interim report covering the first half of 2026. The firm now argues the streaming battle has essentially been settled in Netflix’s favor, and it’s betting on that lead translating into steady, double-digit revenue growth in the years ahead, with margins widening as spending on content grows at a slower clip than sales.
Wall Street Still Backs Netflix, Even After Recent Target Cuts
Ackman’s return isn’t happening in isolation, Wall Street analysts have stayed broadly supportive of Netflix too. The stock carries an overall Buy rating, with an average price target of $91.62 across 50 analysts, ranging from a high of $125 to a low of $70. Several analysts trimmed their targets in July while keeping bullish ratings intact.
Baird kept an Outperform rating while lowering its target to $90 on July 22. Morgan Stanley maintained an Overweight rating while cutting its target to $83 on July 17, and Goldman Sachs held its Buy rating the same day while reducing its target to $94.
NFLX Shares Are Climbing
NFLX Price Action: Netflix shares were up 3.18% at $78.44 at the time of publication on Tuesday, according to Benzinga Pro.
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