Wall Street Analysts Bullish on Netflix, IBM, Tesla, Microsoft

Wall Street’s major indices faced multiple headwinds Thursday, with earnings misses, ongoing trade tensions, and energy market volatility contributing to the downward pressure. Despite these challenges, several prominent analyst firms demonstrated remarkable conviction in their favored technology stocks. The market’s retreat from record highs came as Tesla reported earnings per share of 50 cents, missing estimates by six cents, though the electric vehicle maker did beat revenue expectations with $28.09 billion, representing 11.6% year-over-year growth.

Meanwhile, IBM experienced a pullback despite reporting generally positive results that beat Wall Street estimates, with only its software revenue coming in line with expectations. The broader market sentiment was further complicated by rising crude oil prices, which jumped $2.86 to $61.36 per barrel following the Trump Administration’s imposition of additional sanctions on Russian energy giants Rosneft and Lukoil. Trade concerns also persisted as Treasury officials considered plans to curb exports to China containing U.S. software.

In a notable show of confidence, Bernstein reiterated its outperform rating on Netflix despite the streaming giant’s recent earnings disappointment that had sunk the stock. The firm specifically advised investors to buy NFLX shares, pointing to Netflix recording its highest-ever television viewing share as a key positive indicator. This bullish stance comes with Bernstein maintaining confidence in the company’s competitive position and growth trajectory.

The average price target on Netflix stands at $1,381.26, reflecting Wall Street’s generally optimistic outlook for the streaming pioneer despite recent setbacks. Bernstein’s recommendation represents a contrarian position that emphasizes long-term potential over short-term earnings volatility, suggesting the firm sees underlying strength in Netflix’s business model and market position that transcends quarterly results.

Bank of America maintained its buy rating on IBM with a price target of $315, significantly above the stock’s average target of $287.50. The firm characterized IBM’s quarterly performance as “an overall clean quarter,” noting that the company beat both top-line revenue and earnings per share estimates. This endorsement comes despite IBM’s stock experiencing some pressure following its earnings report.

Deutsche Bank demonstrated particular optimism across multiple technology names, reiterating buy ratings on both Tesla and Microsoft. For Tesla, the firm actually raised its price target to $440 from $435 per share, despite the company’s recent earnings miss. This upward revision suggests Deutsche Bank sees stronger fundamentals or improved prospects for the electric vehicle maker than previously anticipated.

Regarding Microsoft, Deutsche Bank expressed confidence in the company’s positioning across its Azure cloud computing platform and applications business. With Microsoft’s average price target standing at $631.44, the firm’s continued endorsement reflects belief in the software giant’s ability to maintain its leadership in enterprise technology and cloud services despite broader market uncertainties.

The simultaneous bullishness on these four technology leaders occurs against a complex macroeconomic backdrop. The Trump Administration’s sanctions on Russian oil companies Rosneft and Lukoil have injected volatility into energy markets, while ongoing trade tensions with China continue to create uncertainty for global technology supply chains and export markets.

Despite these crosscurrents, the consistent analyst support for Netflix, IBM, Tesla, and Microsoft suggests that Wall Street sees these companies as sufficiently resilient to navigate the current environment. The maintained buy ratings and, in some cases, raised price targets indicate that fundamental business strengths and market positions are outweighing concerns about broader economic and geopolitical pressures in the eyes of these major financial institutions.