JPMorgan downgraded Netflix (NFLX) shares to “neutral” from “overweight” Monday, citing a sharp run-up in the streaming giant’s shares.

However, analysts Doug Anmuth and Bryan M. Smilek also raised their price target on Netflix shares to $1,220 from $1,150 and noted that the stock was "less compelling" following recent gains.

"To be clear, there’s no change to our long-term bullish view on NFLX’s streaming leadership position & the company’s potential to effectively become global TV over time," they wrote. "However, more near-term, following significant stock price appreciation & outperformance, we believe the risk/reward in NFLX shares is becoming more balanced."

Netflix shares are down 2% in premarket trading but have hit record highs last week and surged 34% so far this year entering Monday. Netflix shares closed Friday at $1,191.53. The analysts said that Netflix shares currently trade at 39 times forecast 2026 澳洲幸运5官方开奖结果体彩网:earnings per share (on a GAAP basis) and may have already priced in the upside to its 澳洲幸运5官方开奖结果体彩网:2025 outlook. 

They also noted that investors may rotate their holdings into other stocks that had been under pressure if worries about the economy and tariffs ease. They wrote, too, that the "summer months are seasonally slower” for Netflix and that "2Q is historically a tricky quarter" for the company due to that seasonality.