Netflix (NASDAQ:NFLX)
J.P. Morgan estimates that the new offering may help the streaming giant Netflix (NASDAQ:NFLX) produce as much as $2.7 billion in income solely from the United States and Canada over the next few years. The new product is scheduled to begin in the next few months. As a result, Netflix stock surged in the market.
Analyst Doug Anmuth, who has a neutral rating and a price target of $240 for the Netflix stock, pointed out that Netflix (NFLX) may have 7.5 million advertising-supported subscribers by the end of the following year, which would represent an incremental boost of 5% and generate approximately $600 million in revenue. However, it is possible that by 2026, this number will have increased to 22 million users. It will represent a 19% additional boost to Netflix’s (NASDAQ:NFLX) subscriber count in the area and contribute to revenues of $2.65 billion.
Anmuth wrote to clients that the ad-supported tier in the United States and Canada could generate overall revenue of $1.15 billion in 2023 and $4.6 billion in 2026. This would include incremental revenue of $350 million in 2023 and $2.3 billion in 2026. This would result in a 2% upside to our current estimates for 2023 and a 13% upside to our estimates for 2026.
During the pre-market trading session, Netflix stock was priced slightly lower at $224.25.
The analyst said sales and profit remain “important” for Netflix stock. It is anticipated that further information will be obtained when Netflix (NASDAQ:NFLX) releases its results for the third quarter next week.
After participating in a few polls and studying the Netflix (NASDAQ:NFLX) advertising opportunities, Evercore raised their rating for Netflix stock to outperform a month ago.
Meta Description
Netflix stock saw a significant increase when J.P. Morgan forecasted that the firm might earn $2.7 billion in ad revenue solely from the United States and Canada by 2026.
Featured Image – Megapixl © Twindesign
Author Shariq Khan 
