Netflix 'Playing Offense' While Stock Plays Defense: 6 Analysts On Q1 Results, Advertising Growth Ahead

Analysts highlight advertising revenue growth and future catalysts for Netflix Inc NFLX after the company beat first-quarter revenue and earnings per share estimates.

The Netflix Analysts

• Macquarie analyst Ross Compton maintained an Outperform rating on Netflix and raised the price target from $1,150 to $1,200.
• JPMorgan analyst Doug Anmuth reiterated an Overweight rating and raised the price target from $1,025 to $1,150.
• KeyBanc analyst Justin Patterson maintained an Overweight rating and raised the price target from $1,000 to $1,070.
• Benchmark analyst Matthew Harrigan maintained a Hold rating with no price target.
• Needham analyst Laura Martain maintained a Buy rating with a $1,126 price target.
• Wedbush analyst Alician Reese reiterated an Outperform rating and raised the price target from $1,150 to $1,200.

Macquarie: Advertising monetization could give Netflix a competitive advantage, Compton said in a new investor note.

"Mgmt confirmed they are not seeing a slowdown or pullback in add spend given recent macro uncertainty," he said.

Future catalysts for Netflix include further price increases and the company's upcoming content slate, Compton added. "Its ad-tier represents a broadened and deepened that comfortably paves multi-year double-digit top line growth."

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JPMorgan: The streaming company is "playing offense," while its stock remains defensive, Anmuth said in a new investor note.

The analyst said Netflix's first-quarter financial results and outlook were "solid" and point to confidence in the 2025 full-year results.

Anmuth said that double-digit revenue growth supports Netflix’s bull thesis. He also cited operating margin expansion, improving profit and cash content discipline, a strong leadership position, and the company's potential to become a global TV company with international expansion.

"We believe NFLX is a key beneficiary and driver of the ongoing disruption of linear TV, with Netflix's content performing well globally and driving a virtuous circle of strong subscriber growth, more revenue, and growing profit," Anmuth said.

KeyBanc: The streaming giant highlighted its minimal impact from tariffs and macroeconomic concerns along with strength for its advertising business, Patterson said in a new investor note.

"Netflix's 1Q results reinforced that the Company is relatively insulated from the macro, has 2H catalysts (Stranger Things, Wednesday), and a margin cushion," Patterson said.

The analyst said ad personalization is still in the early innings and Netflix should benefit from its ad-tech platform going forward.

"We believe Netflix is poised for more balanced growth between subscribers and monetization over the MT."

Benchmark: Harrigan said in a new investor note that Netflix shares could be fairly valued despite the bulls’ proposition that they are a safe-haven stock.

The analyst said the stock may provide a buffer against Trump tariffs and global recession, but has limited upside to the stock price.

"Given management's decision not to continue reporting quarterly member tallies we have now pivoted our primary valuation sensitivity to realized 2030 revenue and operating margins," Harrigan said.

Harrigan said Netflix would be "considerably overvalued" if traded as a media company.

Needham: The streaming giant faced more questions about advertising given it no longer breaks out subscriber figures or paid member growth, Martin said in a new analyst note.

"NFLX stated that it has seen no meaningful changes in retention, churn, or plan mix owing to tariffs or a slowing economy," Martin said.

The analyst said Netflix sees its ad-tier ($7.99/month) as a defensive move to keep churn low. The company said it expects advertising revenue to double in 2025.

Martin said the things to like the most about Netflix are global scale, price increases, bundling with other services and advertising revenue growth accelerating.

Wedbush: With a "virtually insurmountable lead in the streaming wars," Netflix gets a price target increase from Reese in a new investor note.

The analyst said Netflix's first-quarter results likely came with higher subscriber additions and revenue per member, despite the company no longer sharing these figures.

"Even with higher pricing, offering its members a vast library of original and licensed content and the option to trade down to less expensive tiers has significantly limited churn," Reese said.

Reese said Netflix is also positioned to boost its ad-tier with live events and improved advertising solutions.

"While massive subscribers growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026."

Price Action: Netflix stock is up 2.6% to $998.74 on Monday versus a 52-week trading range of $542.01 to $1,064.50. Netflix stock is up 12.6% year-to-date in 2025.

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