On 25 August, analysts at Wolfe Research raised their price target for Netflix shares from $84.00 to $95.00. In the firm's view, the company's weak second-quarter subscriber and engagement figures stemmed from the timing of content releases rather than any decline in demand. Previous seasons of shows returning in the third quarter generated 1.3 billion hours viewed in the top 10, compared with 765 million hours for second-quarter releases. On this basis, Wolfe Research expects stronger results in the second half of the year and a solid outlook for 2027.

The distinction matters because Netflix now reports engagement, measured in hours viewed, alongside subscriber numbers as a core performance metric, and analysts increasingly weigh content-slate timing when interpreting quarter-to-quarter swings. Wolfe's read of the data treats the second-quarter softness as a scheduling gap rather than a shift in audience demand, with the heavier third-quarter release calendar positioned as the test of that thesis.

Technical Analysis of Netflix

The four-hour NFLX chart shows a short-term downtrend, within which a descending trendline had formed. On 17 July, the final bar of the trend was accompanied by a pronounced spike in vertical volume, prompting an upward reversal that was followed by a breakout above the trendline.

The stock is now trading above the upper boundary of the current market profile at $80.00, potentially setting the stage for further tests of higher levels. In market-profile terms, this boundary marks the top of the price area where the most trading volume has accumulated, so a sustained move above it reflects demand accepting higher prices. The nearest significant resistance sits around $83.50.

If the market reverses or the price is rejected at the red resistance level, Netflix could move back into the market-profile range. Before attempting to break below the profile, however, the price would need to overcome a substantial cluster of levels, including the POC at $73.30, the point of control where the highest traded volume is concentrated, and the lower profile boundary at $71.00.

Immediately below this cluster lies the green support level around $68.50.

The RSI + MAs indicator currently shows readings of 58, 62 and 60. The oscillator and both moving averages remain above the neutral zone and continue to display bullish signals. Notably, the RSI has not entered overbought territory at any point during the rebound, meaning the advance has not yet reached the extremes that often precede pauses or pullbacks.

Key Takeaways

The move above the market profile, combined with the bullish RSI + MAs readings, could indicate that the previous downtrend has come to an end. The surge in volume at the trend low also marked a potential structural reversal point.

The stock's further performance may depend not only on the technical setup but also on whether upcoming content releases validate analysts' expectations for stronger results in the second half of the year. On the chart, the levels to watch are the $83.50 resistance above and the $73.30–$71.00 cluster below, which frame the next decision area for price.