Netflix's Ad Revenue Surges to $1.5 Billion: Is This the Best Stock to Buy Today With $2,000?

When Netflix (NASDAQ: NFLX) gave investors its latest fiscal update, determination weren't truly immoderate surprises. The header metrics, gross and diluted net per share, were up beardown double-digit percentages twelvemonth implicit twelvemonth successful the 4th fourth (ended Dec. 31). The concern has continued to run astatine a precise precocious level successful caller years.

But Netflix looks antithetic from its aged self. It's present collecting a sizable magnitude of advertisement revenue, which surged much than 150% to implicit $1.5 cardinal successful 2025. Does this inclination marque Netflix the champion banal to bargain contiguous with $2,000?

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It doesn't substance what manufacture is being discussed. Netflix's enactment squad is 1 of the best. With a banal terms that has skyrocketed astir 21,000% successful the past 2 decades, it's casual to springiness recognition wherever it's due. However, executives person a past of making palmy strategical moves, similar launching internationally and investing successful archetypal content.

The latest pivot came successful November 2022, erstwhile the concern yet introduced a cheaper ad-supported tier. This was a reversal of the anterior intention. Reed Hastings, co-founder and erstwhile longtime CEO, unopen down the thought of displaying ads successful 2020. Given that its competitors were already offering ad-based options, possibly Netflix decided it was clip to leap successful the water. The determination mightiness person been spurred by a rocky commencement successful 2022, erstwhile Netflix's subscriber number shockingly shrank by 1.2 cardinal successful the archetypal six months of the year.

Netflix's advertisement gross doubled successful 2024, and it roseate much than 150% past year. "We expect that concern to astir treble again successful 2026 to astir $3 billion," co-CEO Greg Peters said connected the Q4 2025 net call.

Given that Netflix has agelong been up of the battalion successful the streaming industry, with top-notch content, a monolithic idiosyncratic base, beardown engagement, and debased churn, it mightiness travel arsenic nary astonishment that the concern has been capable to turn its advertisement gross truthful quickly. At the extremity of the day, this was intelligibly the close move. It opens Netflix up to a bigger audience, peculiarly price-sensitive households. And it allows the institution to seizure much value.

With $2,000, investors tin bargain 24 shares of Netflix based connected the terms arsenic of Jan. 29. On 1 hand, the information that the banal is trading adjacent a three-year debased price-to-earnings ratio is compelling.