J.P. Morgan
May 14, 2026
Netflix Ad Tier Scale and Sports Strategy Update
Single Stock ReportEquitiesCommunication Services
J.P. Morgan reiterates an Overweight rating on Netflix with a $118 price target, citing rapid ad-tier growth to 250M MAVs and a significant expansion into live sports like the NFL.
Key Takeaways
- 1.Netflix's Ad Tier has reached 250M+ Monthly Active Users (MAVs), increasing by over 60M since November.
- 2.The company is expanding its live sports offering, hosting 5 NFL games during the 2026 season.
- 3.Ad revenue is projected to grow significantly, reaching $3.1B in 2026 and $5.3B in 2027.
Table of Contents
- Quarterly Forecasts (FYE Dec)
- Style Exposure
- Summary Investment Thesis and Valuation
- Investment Thesis
- Valuation
- Performance Drivers
- Investment Thesis, Valuation and Risks
- Risks to Rating and Price Target
- Netflix Inc: Summary of Financials
- Analyst Certification
- Important Disclosures
- Legal Entities Disclosures and Country-/Region-Specific Disclosures
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Authors
Doug AnmuthBryan M. Smilek
Securities
NFLXDisney+
Themes
Advertising MonetizationLive Sports IntegrationGlobal Market Expansion
Regions
GlobalNorth AmericaUnited StatesAustralia