Shares of Netflix (NFLX) gained roughly 2% on Monday, bucking broader market weakness after Bank of America reiterated its bullish outlook on the streaming giant and maintained a $125 price target on the stock.
The move came even as Netflix shares remain down roughly 25% over the past year, with investors continuing to debate whether the company’s advertising and live sports strategies can reignite stronger long-term growth.
At current levels near $89, Bank of America’s target implies significant upside potential of 40% over the next 12 months.
Jessica Reif Ehrlich of Bank of America reaffirmed her Buy rating on Netflix on May 18, arguing that the company’s expanding advertising business remains one of the strongest long-term growth opportunities in the streaming industry.
Advertising business becomes key growth pillar
Much of Wall Street’s optimism surrounding Netflix has increasingly centered on the company’s ad-supported subscription tier.
According to Ehrlich, Netflix’s advertising platform has expanded rapidly over the past year, with the ad-supported tier now reaching more than 250 million monthly viewers compared with approximately 94 million a year earlier.
The company generated roughly $1.5 billion in advertising revenue during 2025, and management expects that figure to approximately double to around $3 billion in 2026.
Netflix has continued investing heavily in advertising technology, pricing tools, and additional ad formats as it competes more aggressively for global digital advertising budgets.
Analysts noted that the advertising business provides Netflix with a potentially powerful second growth engine beyond traditional subscription revenue, particularly as the global streaming market becomes more competitive and subscriber growth moderates across the industry.
Despite recent stock volatility, Wall Street analysts largely continue viewing Netflix as one of the strongest-positioned media companies in the evolving streaming and digital advertising landscape.
NFL partnership strengthens live-event ambitions
Netflix has also continued expanding into live sports programming as part of its broader strategy to increase engagement and attract advertisers.
The company recently extended its partnership with the National Football League through 2029 and secured rights to three additional games.
The agreement includes the NFL’s first Thanksgiving Eve game as well as an international opener in Australia, helping Netflix broaden its global audience reach while strengthening its advertising inventory.
Rather than attempting to fully replicate traditional sports broadcasting models, Netflix appears focused on selectively adding high-profile live events that can drive subscriber engagement and premium advertising demand.
Analysts said the strategy complements the company’s broader push into advertising by creating opportunities for large-scale live audiences that advertisers increasingly value.
Netflix is also expected to spend roughly $20 billion on content during 2026 as it continues expanding its entertainment ecosystem globally.
Wall Street remains broadly bullish
Although Netflix shares have struggled to regain momentum in 2026, analysts have largely maintained positive ratings on the stock.
Recent Wall Street price targets issued this month have ranged from approximately $105 to $128, with the broader analyst consensus still sitting at “Strong Buy.”
Analysts also continue pointing to Netflix’s relatively small share of total global television viewing as evidence of additional long-term growth potential.
According to Ehrlich, Netflix currently represents only about 5% of global TV viewing and serves roughly 330 million subscription households compared with a potential addressable market estimated near 800 million households worldwide.
The combination of advertising growth, live sports expansion, global subscriber scale, and continued earnings momentum has helped sustain bullish sentiment around Netflix even as broader technology and media stocks remain volatile.
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