Netflix Stock Rises As Executive Touts 'Big Year' Ahead

Netflix, Inc. (NFLX) stock has been on an upward trajectory in recent weeks, driven by a combination of factors. The streaming giant has been investing heavily in content and streaming video technology, while its competitors have been struggling. Additionally, Netflix's ad-supported tier has been contributing significantly to subscriber growth, with over 50% of sign-ups in markets where it is available. The company expects ad-tier subscriber growth to scale further in 2025, supported by partnerships with companies like The Trade Desk (TTD) and Google (GOOGL).

Netflix's ad-supported tier currently has more than 70 million monthly active users, with projected growth to 55 million subscribers by the end of 2025. The company is rolling out its proprietary ad server globally in 2025, which is expected to enhance monetization. Furthermore, Netflix is capitalizing on live events, with its two NFL games on Christmas Day expected to further boost ad revenue.

Despite foreign exchange pressures slightly reducing revenue estimates, Netflix is projected to have strong revenue growth of 15% in 2025. Free cash flow is expected to rise by 46% year-over-year in 2025 to $9.3 billion, with further growth to $11 billion in 2026.




Netflix's stock price has been rising as the company continues to invest in content and streaming video technology. The ad-supported tier has been a significant driver of subscriber growth, and the company expects this trend to continue. Despite foreign exchange pressures, Netflix is projected to have strong revenue growth and increasing free cash flow in the coming years.