TLDR
- Netflix’s ad-supported tier has grown to 250 million monthly active viewers, up from 190 million in November 2025
- TD Cowen projects Netflix ad revenue could reach $3 billion by 2026, reaffirming a Buy rating with a $112 price target
- NFLX opened at $86.94 on Friday, with a 52-week range of $75.01 to $134.12
- Institutional ownership stands at 80.93%, though insiders including CEO Gregory Peters and CFO Spencer Neumann sold a combined $3.2 million in stock on May 7th
- Analysts hold a Moderate Buy consensus with an average price target of $114.82
Netflix’s advertising business is picking up fast. TD Cowen analyst John Blackledge reported on May 14 that the company’s ad-supported tier now reaches 250 million monthly active viewers globally, up from 190 million just six months ago.
That’s a jump of 60 million viewers in roughly half a year.
NFLX opened at $86.94 on Friday, sitting well below its 52-week high of $134.12. The stock has a 50-day moving average of $94.98 and a 200-day moving average of $94.94.
TD Cowen reaffirmed its Buy rating on the stock with a price target of $112. The firm projects Netflix’s advertising revenue could double to $3 billion by 2026.
Netflix plans to roll out its ad-supported tier to 15 new markets starting next year. It is also working on enhancements to its programmatic advertising features to attract more ad buyers.
In its most recent quarter, reported April 16, Netflix posted EPS of $1.23, beating the consensus estimate of $0.76 by $0.47. Revenue came in at $12.25 billion, slightly above the $12.17 billion estimate.
That revenue figure was up 16.2% compared to the same quarter last year.
What Analysts Are Saying
The analyst community is broadly positive. KeyCorp raised its price target to $115, up from $108. Goldman Sachs upgraded the stock from Neutral to Buy in April. JPMorgan holds an Overweight rating with a $118 target.
Citi and Evercore also backed the stock following Netflix’s 2026 upfront event, where the company laid out its path toward what it described as becoming “global TV.”
Raymond James is the notable holdout, maintaining a Hold rating. The firm acknowledged ad growth but flagged uncertainty around how quickly Netflix can convert that into sustained financial results.
Of the 52 analysts covering the stock, 34 have a Buy rating, 2 have a Strong Buy, and 16 have a Hold. The average price target sits at $114.82.
Insider Selling and Institutional Activity
On May 7th, CEO Gregory Peters sold 27,312 shares at an average price of $88.69, totaling roughly $2.4 million. That sale reduced his position by 18.42%.
CFO Spencer Neumann also sold 9,253 shares the same day at $88.95, for approximately $823,000, cutting his holding by 11.14%.
In total, insiders sold $135.1 million worth of stock over the past three months. There were no insider purchases during that period.
On the institutional side, the picture looks different. Conning Inc. raised its stake by 764% in Q4, adding 20,078 shares. Several other funds also increased positions. Overall, 80.93% of the stock is held by institutional investors.
Netflix also announced a new AI animation studio called “INKubator” and extended its NFL deal through the 2029-30 season, adding more live game inventory.
Q2 2026 guidance is set at $0.78 EPS. Full-year analyst consensus sits at $3.60 EPS.
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