Bank Remains Upbeat on Netflix, Inc. (NFLX) Stock

BMO Capital today kept a $1,200 price target and an Outperform rating on Netflix, Inc. (NFLX) stock. The bank is bullish on the outlook of the company's advertising tier.

Strong Ad-Tier Metrics and NFLX's Upbeat Outlook

After Netflix, Inc. (NFLX) noted that the number of monthly active users of its ad tier had jumped 34% since November to 94 million, BMO Capital predicts that the company's revenue growth in the second half of the year will be impressive.

The bank noted that subscribers to the ad tier are spending an average of 41 hours per month on the platform. Additionally, the bank reported that NFLX intends to launch an ad tier in its Europe, Middle East, Africa region next week. BMO expects the latter move to significantly boost the tech giant's monetization of ads.

Additionally, noting that Netflix, Inc. (NFLX) intends to launch AI-powered ads in 2026, BMO Capital expects the move to lift NFLX's ad revenue over the longer term.

The Recent Price Action of NFLX Stock

In the last month, the shares have jumped 21%, while they have risen 13% in the last three months.

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