Netflix Stocks Soar to Record High as Ad-Supported Tier Reaches 94 Million Users

Netflix’s stock (NFLX) on NASDAQ hit an all-time high of $1,196.50 on Friday, following a major advertising showcase at its annual Upfront Presentation held at New York City’s Perelman Performing Arts Center.

Investor sentiment remains strong, with Canaccord Genuity raising its price target from $1,200 to $1,380 and maintaining a Buy rating. Wolfe Research also lifted its target from $1,130 to $1,340, assigning an Outperform rating.

This optimism follows Netflix’s launch of the Netflix Ads Suite—its proprietary advertising platform—which is currently live in the U.S. and Canada, with planned expansion to Europe, the Middle East, and Africa starting in June.

At the event, Amy Reinhard, Netflix’s President of Advertising, shared encouraging updates: the platform’s ad-supported tier now has 94 million monthly active users, up from 70 million in November 2024 and just 40 million in May 2024.

Engagement metrics are equally impressive. Reinhard said ad-tier viewers watch an average of 41 hours per month, with the plan reaching more 18–34-year-olds than any broadcast or cable network in the U.S. When accounting for shared accounts and extrapolated profiles, the 94 million ad-tier subscribers represent an estimated global reach of 170 million viewers.

After years of avoiding advertising, Netflix entered the market in 2022 with its “Standard with Ads” plan, currently priced at $7.99 per month in the U.S. Although this ad-supported tier is not yet available in Nigeria, Netflix continues to offer Mobile (₦1,200), Basic (₦2,900), Standard (₦4,400), and Premium (₦5,400) plans to Nigerian subscribers.

The success of Netflix’s ad tier coincides with strong Q1 2025 financial results. The company reported $10.54 billion in revenue, a 13% increase year-over-year from $9.3 billion in Q1 2024. Net income rose to $2.89 billion, up from $2.33 billion, while earnings per share (EPS) jumped to $6.61, surpassing analyst expectations of $5.68. Operating margin improved from 28.1% to 31.7%.

With shares approaching a 20%–25% profit-taking zone from its post-earnings breakout at $998.70, Netflix looks well-positioned to benefit from growth in the advertising sector—an important area that could help offset subscription plateaus and drive long-term revenue growth.