Netflix is the IBD Stock Of The Day as the internet television network gets positive reviews for its presentation to advertisers and media buyers during upfronts season.
At its third annual upfront event on Wednesday in New York City, the streaming video leader announced several ad-tech advancements, more robust branded partnerships, and an ad tier that now boasts 94 million monthly active users worldwide.
Netflix's ad-tier user count is up 34% since November, BMO Capital Markets analyst Brian Pitz said in a note to clients Thursday. Its growing advertising user base "creates a positive monetization setup in second-half 2025 and beyond," Pitz said.
Pitz rates Netflix stock as outperform with a price target of 1,200.
On the stock market today, Netflix stock rose 2.3% to close at 1,177.98.
On April 21, Netflix stock broke out of a double-bottom base at a buy point of 998.70 after its first-quarter earnings report. It now is forming a shelf and a possible three-weeks-tight pattern, though its gains thus far this week push it outside that realm.
At the company's upfront presentation, Amy Reinhard, Netflix's president of advertising, said the streamer reaches more 18-to-34-year-olds than any other U.S. broadcast or cable network. Further, ads members in the U.S. are highly engaged, spending an average of 41 hours per month on Netflix, she said.
"Because our audience is unique, engaged and attentive, a dollar spent on Netflix is more valuable than a dollar spent anywhere else," Reinhard told the ad buyers.
Netflix Stock Is On Four IBD Lists
Evercore ISI analyst Mark Mahaney reiterated his outperform rating on Netflix stock with a price target of 1,150 on Wednesday.
The Netflix upfront presentation was "incrementally positive" for the company, "given the continued growth of ad viewers and the acceleration of Netflix's ad tech platform rollout," Mahaney said in a client note.
At the event, Netflix previewed its content slate for the rest of the year. Upcoming content includes new seasons of hit shows "Bridgerton," "Squid Games," "Stranger Things" and "Wednesday."
"Netflix is simply running away with the streaming market thanks to excellent execution, a stellar content slate, and scale advantages," Mahaney said.
Netflix stock is on four IBD stock lists: Leaderboard, SwingTrader, IBD 50 and Big Cap 20.
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Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
