$NFLX: JPMORGAN DOWNGRADES NETFLIX TO NEUTRAL FROM OVERWEIGHT - PT $1,220 (FROM $1,150) We remain bullish on Netflix’s long-term leadership in streaming and its potential to become global TV. However, in the near term, after strong stock gains, the risk/reward looks more balanced. Three key points: 🔸 The stock is at an all-time high, trading at 39x 2026E EPS and 44x 2026E FCF, likely pricing in 2025 upside. 🔸 NFLX has been a defensive play, but easing macro/tariff concerns could lead investors to rotate into other beaten-down tech names. 🔸 Summer is a seasonally slower period for Netflix, and after last week’s Upfront, the near-term catalyst path looks quieter, despite strong Q3 content.