Netflix (Netflix (NFLX)) stock was in the spotlight Monday after BofA Securities analyst Jessica Reif Ehrlich laid out a bullish case for the streaming giant, pointing to its rapidly growing advertising business, a fresh push into live sports, and a long runway for subscriber growth. She reiterated a Buy rating and a $125 price target.

Here's what's driving the optimism.

Advertising Business Gains Momentum

Ehrlich noted that Netflix's ad-supported tier is scaling fast. Global monthly viewers on the ad plan have surged to more than 250 million, up from 94 million last year. That's a lot of eyeballs — and advertisers are taking notice.

Netflix generated about $1.5 billion in advertising revenue in 2025, and Ehrlich expects that to double to roughly $3 billion in 2026. The company is also expanding ad placements into mobile vertical video feeds and podcasts, and it's testing personalized ads based on viewer behavior. The idea: lower ad loads but charge more for targeted, addressable ads. It's a classic trade-off — fewer interruptions, higher value per ad.

Netflix Expands Push Into Live Sports

Netflix is also getting more serious about live sports. The company recently secured three additional NFL games and extended its partnership with the league through 2029. The new package includes the NFL's first Thanksgiving Eve game, an international opener in Australia, and another late-season matchup — on top of the existing Christmas Day games.

Ehrlich believes this broader sports push will help Netflix expand its advertising revenue and reach audiences across more than 200 countries. But don't expect Netflix to go all-in on full-season sports packages. She said the company is likely to keep adding select live events and major programming rather than buying entire leagues.

Subscriber Growth Runway Remains Large

Even with its dominant position in streaming, Netflix still accounts for only about 5% of global TV viewership and less than 45% of its addressable market, according to Ehrlich. BofA estimates Netflix currently has roughly 330 million subscriber households, compared with a total addressable market of 800 million global smart-TV households. That's a lot of potential new subscribers.

Ehrlich expects future revenue growth to come from a mix of subscriber additions, price increases, and advertising expansion. Netflix's strong brand, global scale, and expanding growth drivers position it well for continued momentum, she said.

Earnings & Analyst Outlook

The next big catalyst for the stock is the July 16, 2026 (estimated) earnings report. Here's what analysts are looking for:

• EPS Estimate: 79 cents (up from 72 cents a year ago)
• Revenue Estimate: $12.58 billion (up from $11.08 billion)
• Valuation: P/E of 28.1x, a premium relative to peers

The stock carries a Buy consensus with an average price target of $114.15. Recent analyst moves include:

• Guggenheim: Buy, target maintained at $120 (May 15)
• Piper Sandler: Overweight, target raised to $115 (April 17)
• Oppenheimer: Outperform, target lowered to $120 (April 17)

NFLX Price Action: Netflix shares were up 2.77% at $89.43 at the time of publication Monday.