Netflix Inc (NASDAQ:NFLX) stock remained in focus Monday after BofA Securities analyst Jessica Reif Ehrlich highlighted the streaming giant's growing advertising business, expanding live sports strategy, and long-term subscriber growth potential while reiterating a Buy rating on the stock.



Ehrlich maintained a $125 price forecast.



<h2>Advertising Business Gains Momentum</h2>



Ehrlich noted on Monday that Netflix's ad-supported tier continues to scale rapidly, with global monthly viewers rising to more than 250 million from 94 million last year.



She noted that Netflix generated about $1.5 billion in advertising revenue in 2025 and expects that figure to double to roughly $3 billion in 2026.



She also highlighted Netflix's efforts to expand advertising placements into mobile vertical video feeds and podcasts while testing personalized ads based on viewer behavior.



According to Ehrlich, Netflix believes it can lower ad loads while increasing advertising revenue by adopting more targeted, addressable advertising formats.



<h2>Netflix Expands Push Into Live Sports</h2>



Ehrlich said Netflix is strengthening its sports strategy after securing three additional NFL games and extending its partnership with the league through 2029.



The new package includes the NFL's first Thanksgiving Eve game, an international opener in Australia, and another late-season matchup, in addition to Netflix's existing Christmas Day games.



She believes the broader push for live sports should help Netflix expand its advertising revenue and global audience reach across more than 200 countries.



Ehrlich added that Netflix is likely to continue adding select live sports events and major programming rather than pursuing full-season sports packages.



<h2>Subscriber Growth Runway Remains Large</h2>



Despite Netflix's leadership in streaming, Ehrlich said the company still accounts for only about 5% of global TV viewership and less than 45% of its addressable market.



Based on BofA's forecasts, Netflix currently has roughly 330 million subscriber households compared with an estimated total addressable market of 800 million global smart-TV households.



Ehrlich expects future revenue growth to remain driven by a combination of subscriber additions, pricing increases, and advertising expansion.



She said Netflix's strong brand, global scale, and expanding growth drivers position the company for continued subscriber and earnings momentum.



<h2>Earnings &amp; Analyst Outlook</h2>



Looking further out, the next major catalyst for the stock arrives with the July 16, 2026 (estimated) earnings report.



<ul>
<li>EPS Estimate: 79 cents (Up from 72 cents YoY)</li>



<li>Revenue Estimate: $12.58 Billion (Up from $11.08 Billion YoY)</li>



<li>Valuation: P/E of 28.1x (Indicates premium valuation relative to peers)</li>
</ul>



Analyst Consensus &amp; Recent Actions: The stock carries a Buy rating with an average price target of $114.15. Recent analyst moves include:



<ul>
<li>Guggenheim: Buy (Maintains Target to $120.00) (May 15)</li>



<li>Piper Sandler: Overweight (Raises Target to $115.00) (April 17)</li>



<li>Oppenheimer: Outperform (Lowers Target to $120.00) (April 17)</li>
</ul>



NFLX Price Action: Netflix shares were up 2.77% at $89.43 at the time of publication on Monday, according to Benzinga Pro data.



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Netflix (NFLX) stock remains a focus as BofA maintains a Buy rating with a $125 target, driven by a booming ad revenue expected to reach $3B in 2026 and an expanded live sports strategy. Analyst Jessica Reif Ehrlich highlights Netflix's growing ad-supported tier, which has increased viewers to over 250 million, and its efforts to secure more NFL games. Despite leading in streaming, Netflix captures only 5% of global TV viewership, indicating significant growth potential ahead.

- Netflix Inc's stock remains a focal point as BofA Securities' analyst Jessica Reif Ehrlich emphasizes its expanding advertising business, live sports strategy, and potential for subscriber growth while maintaining a Buy rating with a $125 price forecast.  
- The company saw its ad-supported viewers surge to over 250 million, generating approximately $1.5 billion in 2025 advertising revenue, expected to double in 2026.  
- Netflix's focus on live sports includes additional NFL games and partnerships aimed at increasing its advertising revenue and global audience reach, with significant upcoming earnings estimates.

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