Netflix Price Target Raised to $1,490 by Bank of America on Strong Subscriber Growth and Ad Expansion

Netflix is showing strong signs of growth, and Bank of America is confident the company will continue to perform well. The bank recently raised its price target on Netflix shares from $1,175 to $1,490, highlighting big gains in subscribers and a growing ad business as key reasons.

Big Subscriber Gains in Late 2024

Netflix added nearly 19 million new subscribers in the last quarter of 2024. This was a surprising boost, especially because many expected Netflix’s growth to slow down as more streaming competitors like Disney+ and Amazon Prime Video fight for viewers. Netflix’s subscriber base now remains one of the largest in the world, thanks to its global reach and popular shows.

Ad-Supported Plan Growing Quickly

Netflix’s ad-supported subscription plan has grown from 70 million monthly active users in November 2024 to 94 million users recently. This means millions more people are watching Netflix while viewing ads, rather than paying for the ad-free version. This growth is important because Netflix can make money from advertisers in addition to subscription fees.

Interestingly, Netflix now reaches more viewers aged 18 to 34 than any major U.S. TV network — both broadcast and cable. This young audience is very valuable to advertisers, helping Netflix increase ad revenues.

Expanding Advertising Globally

Netflix is rolling out its internal advertising platform to 10 new countries beyond the U.S. and Canada. The platform uses advanced technology to insert ads smoothly during shows, improve ad targeting through first-party data, and allow automated buying of ads by marketers (called programmatic advertising). These improvements help Netflix attract more advertisers and increase revenue from ads.

Strong Content Lineup and Live Events

Netflix has several popular shows returning in the second half of 2025, including Stranger Things, Squid Game, and Wednesday. These hits help keep current subscribers engaged and attract new ones.

Netflix is also branching into live events, which is a new area for the company. It plans to stream NFL Christmas gamesand boxing matches from Madison Square Garden. These events are expected to draw large audiences, especially to the ad-supported tier, providing more opportunities for ad revenue.

Netflix’s Stock Is Up Big, But Competition Is Heating Up

Netflix’s share price has jumped about 33% this year, mostly because they surprised everyone by adding nearly 19 million new subscribers late last year. Plus, their ad-supported plan is growing fast, now with 94 million people using it every month. This mix of paid and ad-based viewers gives Netflix a unique way to make money compared to other streaming services.

That said, Netflix still faces some big challenges. Competitors like Disney+ and Amazon are spending heavily on new shows and movies, making it tougher for Netflix to keep people hooked. Their hit shows like Stranger Things and Squid Game are crucial for keeping subscribers around.

Netflix is also figuring out how to run ads without annoying viewers. This is tricky because privacy rules keep changing, which can make it harder to target ads effectively. How well Netflix manages this will have a big impact on their ad revenue going forward.

What Netflix’s Future Looks Like for Investors

Bank of America recently raised their price target on Netflix to $1,490, showing they believe in Netflix’s growth potential. Netflix is also trying new things like streaming live sports — NFL games and big boxing matches — which could bring in new viewers and more ad dollars.

But investors should keep an eye on a few things: whether subscriber growth keeps up, how viewers react to more ads, and how Netflix competes with other streaming giants. The next year will be important to see if Netflix can keep its lead or if rivals catch up.

In short, Netflix is doing well right now, but there’s still a lot that could go either way.

Also Read: Netflix Surpasses Expectations with Impressive Subscriber Growth and Revenue Gains