On Wednesday, streaming giant Netflix (NASDAQ:NFLX) announced that its ad-supported subscription tier has reached 40 million monthly active users and that it plans to phase out its least expensive ad-supported plan later this year. This update came during the company’s presentation to advertisers in New York, where Netflix advertising executive Amy Reinhard shared the milestone. The news led to a rise in Netflix shares from its intraday low.
In addition to this growth, Reinhard revealed plans to develop an in-house advertising platform by the end of 2025 with the help of The Trade Desk (TTD), Magnite (MGNI), and Google (GOOG) (GOOGL). This marks a shift from its current partnership with Microsoft (MSFT).
Netflix also used the event to announce several content updates, including a sequel to Adam Sandler’s “Happy Gilmore,” according to Deadline. Additionally, in a move to expand its live broadcasting capabilities, Netflix disclosed a three-season agreement to air two National Football League games on Christmas Day.
Is NFLX Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 23 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 84% rally in its share price over the past year, the average NFLX price target of $654.64 per share implies 6.71% upside potential.
