Netflix Stock (NFLX) Wins Bullish Reviews on Traction in Ad Business

Earlier this week, streaming giant Netflix (NFLX) revealed that its ad-supported tier now has 94 million monthly active users (MAUs), reflecting a jump of more than 20 million since the last tally in November. Several analysts have cheered this update and given bullish reviews on the company’s prospects in the ad space.

Netflix’s ad-supported plan is priced at $7.99, marking a notable discount from the most economical ad-free plan of $17.99. The company and its rivals have been increasingly focusing on advertising to enhance the profitability of their streaming products.

Analysts Remain Upbeat About NFLX Stock

Following Netflix’s annual Upfront Presentation, Evercore analyst Mark Mahaney reiterated a Buy rating on the stock with a price target of $1,150. The 5-star analyst said that he came out incrementally positive from the event, noting the continued growth of ad viewers and the acceleration of Netflix’s ad tech platform rollout. He highlighted that the presentation revealed new data points on ad viewership, including 94 million monthly ad viewers, up from 70 million in November and 40 million in May 2024, updates and timing on the ad tech stack rollout, and snippets from a variety of new shows and movies.

Further, BMO Capital analyst Brian Pitz reaffirmed a Buy rating on NFLX stock with a price target of $1,200. The 5-star analyst noted the jump in the MAUs for Netflix’s AVOD (Advertising-based Video on Demand) tier and believes that it creates a positive monetization setup for the second half of 2025 and beyond. Pitz also highlighted that AVOD users spend 41 hours/month watching content, and with the rollout of NFLX’s Ad Suite in EMEA next week, ad monetization tailwinds are expected to continue. Pitz highlighted that Netflix will launch AI-powered incremental ad formats in 2026, creating a multi-year catalyst for ad revenue growth.

Likewise, Seaport Research analyst David Joyce boosted the price target for Netflix stock to $1,230 from $1,060 and maintained a Buy rating. The 4-star analyst said that the company’s in-house advertising capabilities are being built “with great flexibility in an array of formats, which will be a significant growth driver.” That said, Joyce thinks that NFLX’s subscription price hikes and membership growth will still “underpin the majority of its revenue.” He contends that while pricey, NFLX stock has been recession-resilient.

Is NFLX Stock a Buy, Sell, or Hold?

Overall, Wall Street has a Strong Buy consensus rating on Netflix stock based on 28 Buys and eight Hold recommendations. The average NFLX stock price target of $1,165.35 indicates that shares are fully priced at current levels. NFLX stock has rallied 32% so far this year.

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