Analyst on Netflix (NFLX): There's No 'Panic, Collapse Here'; Ads Business Still in Early Stages of Growth

We recently published 10 Stocks Everyone’s Discussing Amid Latest Earnings Season. Netflix, Inc. (NASDAQ:NFLX) is one of the stocks everyone's discussing.

Rich Greenfield, Lightshed Partners co-founder, commented on the post-earnings stock drop of Netflix Inc (NASDAQ:NFLX) in a recent program on CNBC. The analyst said there is no “collapse here” and there should be no “panic” around Netflix Inc (NASDAQ:NFLX) as the company is still growing and the stock is an “execution story.” He believes the company’s ads business is still in its early stages, and the company succeeded in getting back to growth with two moves

“They’re still very early in their journey. I mean, it’s growing, it’s doubling, but I mean, these are in the scheme of Netflix Inc (NASDAQ:NFLX), Karen, like these are still small numbers. They need to bring on, you know, that they’re still early in in bringing on advertisers, getting more customers or more subscribers, I should say, onto the ad tier. You know, this is a multi-billion dollar business, but you know, when you compare it to the scale of other companies in the ad space, I mean, they’re dwarfed by the Metas and the Google’s, let alone, you know, companies like Disney and and Paramount, even CBS. And so, they’re growing rapidly. You know, the ad tier has certainly I mean, think about what happened. If we just go back in time the reason they launched advertising remember is they missed and revenue growth was sub 10% and they were like how do we start growing again and it was a combination of launching the ad tier and introducing the restrictions on password sharing and those two things have driven the company from high single-digit revenue growth back into the high teens. They’ve succeeded in restoring rapid growth to this company, growing earnings, you know, at 30% plus this year. And so there is really good growth dynamics that’s been restarted, but they are just scratching the surface. Their ad experience is actually relatively unexciting. Ads on Netflix Inc (NASDAQ:NFLX) look like ads on TV. I think that’s the opportunity to make it a very different experience over the next few years.”

Macquarie Core Equity Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX) offers a subscription-based streaming service. We expect the company’s growth momentum will continue while investments in content and licensing grow at a slower rate, allowing for higher margins over the coming two to three years.”

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Disclosure: None. This article is originally published at Insider Monkey.