Shares of Netflix moved higher this week, standing out in an otherwise weak market as renewed analyst confidence pushed the stock upward. The streaming giant gained around 2% after fresh bullish commentary from Bank of America, which reaffirmed its positive stance on the company’s long-term growth potential.
The optimism comes at a time when Netflix stock has struggled over the past year, declining significantly and raising questions about its future trajectory. However, analysts now believe the company’s evolving business model, particularly its push into advertising and live sports, could unlock a new phase of growth.
Why Netflix Stock Is Rising Right Now
The recent uptick in Netflix shares is largely tied to a strong endorsement from Bank of America, which maintained a $125 price target on the stock. At current levels near $89, this suggests a potential upside of roughly 40% over the next year.
Jessica Reif Ehrlich of Bank of America reiterated a “Buy” rating on May 18, highlighting confidence in Netflix’s long-term strategy. She pointed to the company’s expanding advertising segment as a major factor behind the bullish outlook.
This positive call has helped boost investor sentiment, especially as broader markets remain volatile. It also reinforces the idea that Netflix may be entering a new growth cycle after a period of slower momentum.
Advertising Is Becoming Netflix’s Growth Engine
One of the biggest drivers behind the renewed optimism is Netflix’s rapidly growing advertising business. The company’s ad-supported subscription tier has seen significant expansion over the past year, reaching more than 250 million monthly viewers compared to around 94 million previously.
This growth has translated into meaningful revenue gains. Netflix generated approximately $1.5 billion in advertising revenue in 2025, and projections suggest that number could double to about $3 billion in 2026.
Analysts view this shift as critical because it gives Netflix a second major revenue stream beyond subscriptions. As competition in the streaming space intensifies and subscriber growth slows, advertising provides a way to maintain momentum while tapping into global digital ad spending.
To support this expansion, Netflix has been investing heavily in ad technology, pricing strategies, and new formats designed to attract large advertisers. This positions the company to compete more directly with major digital advertising platforms.
NFL Partnership Signals Bigger Live Content Strategy
Another key factor supporting Netflix’s outlook is its growing involvement in live sports. The company recently extended its partnership with the National Football League through 2029, securing rights to additional games.
The deal includes unique events such as a Thanksgiving Eve game and an international opener in Australia. These additions are expected to boost global engagement while creating premium advertising opportunities.
Rather than fully entering the traditional sports broadcasting space, Netflix appears to be taking a selective approach. By focusing on high-profile events, the company can attract large live audiences without committing to the full costs of a sports network.
Analysts believe this strategy complements Netflix’s advertising push, as live events tend to draw higher-value ad placements. It also helps differentiate the platform in an increasingly crowded streaming market.
Long-Term Growth Outlook Remains Strong
Despite recent stock volatility, Wall Street sentiment toward Netflix remains broadly positive. Price targets from analysts currently range between $105 and $128, with the consensus still leaning toward a strong buy.
One reason for this confidence is Netflix’s relatively small share of global TV viewing. The company currently accounts for about 5% of worldwide television consumption, while serving roughly 330 million households. Analysts estimate that the total addressable market could reach around 800 million households, leaving significant room for expansion.
In addition, Netflix is expected to continue investing heavily in content, with spending projected to reach around $20 billion in 2026. This ongoing investment is aimed at maintaining its competitive edge and attracting new subscribers worldwide.
