J.P. Morgan analyst Doug Anmuth reiterated an Obese rating on Netflix, Inc. (NASDAQ:NFLX) with a price forecast of $1,150.
The analyst writes that the corporate’s shares are outperforming the SPX, because of 2025 revenue growth outlook of 12% to 14% (reported) and 14% to 17% (FX-neutral), strong content slate, and leadership position within the streaming platform.
Read: Netflix To Launch First MMO Video Game: Is It The Streaming Company’s Biggest Gaming Bet Yet?
Anmuth previously noted that Netflix is well-positioned to resist macroeconomic challenges on strong user engagement (around two hours per household per day) together with its affordability and high entertainment value.
He also emphasized that the low-cost ad-supported tier ($7.99/month within the U.S.) enhances accessibility, making the service appealing to a broad audience.
The analyst says that with Netflix now not reporting subscriber figures, market attention is predicted to shift toward revenue growth, with projections appearing reasonable ahead of first-quarter earnings in April.
Anmuth projects revenue expansion in 2025 on high engagement, organic subscriber gains, and ARM lift following recent price adjustments within the U.S. and U.K., which could generate over $2 billion in additional annual revenue.
Moreover, the weaker U.S. dollar since fourth-quarter earnings may contribute around ~140bps to revenue, with ~75%-80% expected to profit operating income, adds the analyst.
Also, the analyst expects the road to concentrate on Netflix’s promoting sector, as Netflix Ads Suite is about to launch within the U.S. in April.
Moreover, the analyst anticipates an updated disclosure on ad-tier monthly energetic users (MAUs), likely exceeding 100 million, together with the expansion of first-party ad technology into international markets and confirmation of a second NFL Christmas Day game this yr.
Going forward, Anmuth estimates Ad Tier subs to be 60 million+ by the top of 2025 and Promoting revenue (ex-subscription) to be $3.2 billion in 2025 (vs. $1.4 billion in 2024).
Also, the analyst stays optimistic about Netflix’s 2025 content lineup, highlighting key releases equivalent to The Residence, Harlan Coben’s Caught, Devil May Cry, The Clubhouse: A Yr with the Red Sox, Black Mirror Season 7, and You Season 5.
Investors can gain exposure to the stock via T-Rex 2X Long NFLX Day by day Goal ETF (BATS:NFLU) and First Trust DJ Web Index Fund (NYSE:FDN).
Price Motion: NFLX shares are up 0.83% at $968.28 on the last check Monday.
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