Netflix Stock Surges After Analyst Upgrade Highlights Growth in Advertising and Margins

MoffettNathanson raises Netflix rating to 'buy,' citing increased ad revenue potential and price hike-driven profitability.

MoffettNathanson upgraded Netflix's stock from 'neutral' to 'buy,' raising the 12-month price target from $850 to $1,100 per share.
Analysts predict Netflix's operating margin will grow by at least 200 basis points annually, reaching 40% by 2030, driven by subscription and advertising revenue growth.
Netflix's advertising-supported tier is forecasted to generate over $6 billion in revenue by 2027 and nearly $10 billion by 2030, with increased monetization of lower-cost subscribers.
Recent price hikes across Netflix's plans, including the U.S. Standard ad-free plan, are expected to further boost revenue and profitability.
The company will no longer report subscriber numbers regularly, shifting its focus to engagement and profitability metrics, with Q1 2025 results set for release on April 17.