Netflix Gains 5% on Management’s Positive Comments

Netflix Gains 5% on Management’s Positive Comments Jan. 11, 2024, 12:40 p.m., readers: 50

Shares of Netflix (NASDAQ:NFLX) climbed by 5% intra-day today, driven by growing enthusiasm for the company's advertising-supported subscription option. Recent statements from the company at CES indicate a surge in the adoption of this ad-supported tier. Netflix's management reported that their ad-tier has now reached 23 million global monthly active users (MAUs), a significant increase from the 15 million reported in the previous update in October 2023. In light of this development, Citi analysts remain optimistic about the future growth of Netflix's ad-tier subscribers. Their analysis suggests that Netflix is on track to add approximately 16 million ad-tier subscribers annually. Citi finds the recent uptick in adoption encouraging and believes there's potential for an even faster increase in ad-tier subscribers. The analysts estimate that Netflix will gain around 25 million ad-tier subscribers in 2024. Looking further ahead, their projections indicate that Netflix could reach approximately 82 million ad-tier subscribers by 2028.

About NASDAQ: NFLX

N etflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices.

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