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BUZZ-Brokerages expect Netflix to climb ad-tier ladder on live events, partnerships

ReutersJan 15, 2025 4:57 PM

** Shares of streaming platform Netflix NFLX.O rise 2% to $843.54

** Three brokerages say they expect NFLX to grow its ad-supported tier in the coming years with the help of live events and partnerships
** Analysts at Wedbush see the ad tier becoming the primary revenue growth driver by 2026
** "We expect upside to subscribers, driven by Paul/Tyson, NFL Christmas games, and Squid Games season 2, with full 2025 content slate and advertising ramp as catalyst for Q1" - brokerage Oppenheimer

** BMO Capital Markets notes that AVOD (advertising-based video on demand) monetization was gaining traction among brand advertisers

** BMO raises PT to $1000 from $825; the stock's median PT is $888, according to data compiled by LSEG

** New seasons for popular titles such as "Stranger Things", "Squid Games", "You" and "Ginny and Georgia" are also expected to drive new subscribers in the coming year

** Thirty-two of 49 brokerages rate the stock "buy", 14 "hold" and three "sell"

** Stock had risen 83.1% last year

(Reporting by Kritika Lamba in Bengaluru)

((Kritika.Lamba@thomsonreuters.com))

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