Stream On: BofA Sees More Gains Ahead for Netflix

• Bank of America (BAC) raised its price target for Netflix (NFLX) to $1,490 from $1,175, reaffirming a ‘Buy’ rating due to the company’s dominant scale, strong subscriber growth of nearly 19 million in Q4 2024, and expanding advertising and live content strategies.
• Netflix’s ad-supported plan now reaches 94 million monthly active users, surpassing any U.S. broadcast or cable network among 18–34-year-olds, with its ad platform expanding into 10 new markets.
• A robust content lineup, including returning hits like Stranger Things and live events like NFL Christmas games, is expected to drive retention and boost ad-supported engagement in 2025.

Netflix (NFLX) is poised for sustained growth, as Bank of America (BAC) analysts reaffirmed their ‘Buy’ rating and raised their price target to $1,490 from $1,175 in a client note issued on Friday. The bank’s optimism stems from Netflix’s commanding position in the streaming industry, driven by its unmatched scale, robust subscriber additions, and strategic expansion into advertising and live content. This bullish outlook aligns with broader market trends and Netflix’s ability to capitalize on evolving consumer preferences and technological advancements.

The streaming giant’s stock – last trading at $1,192.28 – has surged approximately 86% year-over-year and 34% year-to-date, fueled by consistent earnings strength and positive subscriber trends. In the fourth quarter of 2024, Netflix added nearly 19 million subscribers, underscoring its ability to attract and retain a global audience. This growth is supported by a formidable content slate for the second half of 2025, which Bank of America describes as a “content bonanza.” Returning flagship series such as Stranger Things, Squid Game, and Wednesday are expected to anchor subscriber retention, while new titles and high-profile live events, including NFL Christmas games and boxing at Madison Square Garden, are set to enhance engagement, particularly on the ad-supported tier.

Netflix’s advertising business is gaining significant momentum, with its ad-supported plan now reaching 94 million monthly active users, a notable increase from 70 million in November 2024. The company’s focus on expanding its internal ad platform into 10 additional markets beyond the U.S. and Canada emphasizes advanced data integration, improved measurement, dynamic ad insertion, and scaled programmatic buying. These efforts position Netflix to capture a growing share of the digital advertising market, which is projected to continue expanding as brands shift budgets from traditional media. Bank of America notes that Netflix now reaches more 18–34-year-olds than any U.S. broadcast or cable network, a demographic critical to advertisers and indicative of the platform’s cultural relevance.

The broader streaming landscape remains competitive, but Netflix’s scale and diversified strategy provide a distinct edge. Its investment in live content, including sports and events, taps into growing demand for real-time entertainment, while its global reach and localized content offerings ensure broad appeal. Bank of America attributes part of Netflix’s recent stock performance to defensive rotation amid trade tariff concerns, suggesting the company’s resilience in uncertain economic conditions. With a fortified content pipeline and accelerating advertising capabilities, Netflix is well-equipped to maintain its leadership and drive long-term value. Bank of America’s reiterated confidence underscores the belief that Netflix will continue to outperform, making it a compelling opportunity for investors.

WallStreetPit does not provide investment advice. All rights reserved.

• Bulenox: Get 75% OFF ... Use Discount Code: J5RE6
• Risk Our Money Not Yours | Get 50% to 90% OFF ... Use Discount Code: MMBVBKSM