Netflix Stock Gains as BofA Maintains $125 Price Target

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Netflix stock rose about 2% after Bank of America reaffirmed its Buy rating and $125 price target.
The analyst said Netflix’s advertising business remains a core driver of long-term revenue growth.
The ad-supported tier expanded to more than 250 million monthly viewers over the past year.
Netflix generated around $1.5 billion in advertising revenue in 2025 and expects it to double in 2026.
The company extended its NFL partnership through 2029 and secured rights to three additional games.

Netflix shares climbed about 2% on Monday, even as major indexes declined during the session. Bank of America reaffirmed its Buy rating and maintained a $125 price target. The call supported Netflix stock and highlighted advertising and live sports as growth drivers.

Netflix, Inc., NFLX

Netflix Stock Gains Support from Advertising Expansion

Bank of America analyst Jessica Reif Ehrlich restated her Buy rating on May 18. She said the company’s advertising platform remains a core long-term growth driver. She also kept a $125 target, which implies about 40% upside from current levels near $89.

Netflix expanded its ad-supported tier rapidly over the past year. The tier now reaches more than 250 million monthly viewers, up from about 94 million. The company generated about $1.5 billion in advertising revenue during 2025.

Management expects advertising revenue to reach roughly $3 billion in 2026. Ehrlich said, “The advertising business remains one of the strongest long-term opportunities in streaming.” Netflix continues to invest in ad technology and pricing tools to attract global marketing budgets.

Live Sports Push and Content Spending Shape Outlook

Netflix extended its partnership with the National Football League through 2029. The agreement includes rights to three additional games. It also features the league’s first Thanksgiving Eve game and an international opener in Australia.

The company aims to boost engagement through selective live events. Executives focus on high-profile programming instead of replicating traditional sports networks. Analysts said live sports create valuable inventory for premium advertising placements.

Netflix plans to spend about $20 billion on content in 2026. The company continues to expand its entertainment catalog across international markets. Wall Street price targets this month ranged between $105 and $128.

Analysts maintain a “Strong Buy” consensus rating on the stock. They cite Netflix’s global scale and expanding revenue streams. The company currently represents about 5% of total global television viewing.

Netflix serves around 330 million subscription households worldwide. Analysts estimate a potential addressable market of nearly 800 million households. Ehrlich said the company “still has ample room to grow within global TV.”

NFLX stock has remained down about 25% over the past year. However, Monday’s gain contrasted with broader market weakness. Shares traded near $89 at the close of the latest session.

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