Evercore says ‘buy this dip’ in Netflix after ‘rare’ revenue miss

Evercore ISI notes Netflix (NFLX) revenue missed guidance and the Street consensus by 0.1%, marking the first miss in two years in that metric and adding that the company’s massive subscription model doesn’t lend itself to major variance either way in any one quarter. The firm believes shares traded off 6% in the after-market due to the “rare,” though “very modest,” revenue miss; the “sloppy” operating income result due to the Brazil expense issue; and the lack of 2026 guidance, even though it believes Street 2026 numbers are “more likely to be raised than lowered next quarter.” The firm, which would be buyers on the dip, reiterates an Outperform rating and $1,375 price target on Netflix shares.