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Netflix is generating significant revenue from ads. The company earned $1.5 billion from advertising in 2025. This is more than twice what Netflix earned in 2024. Ads now make up about 3% of Netflix’s total revenue. Experts say ad revenue could double again in 2026, highlighting the business’s potential.
At the same time, Netflix is still growing its streaming services. The company agreed to buy studios and streaming assets from Warner Bros. Discovery for $72 billion the previous year. This caused some arguments with Paramount Skydance and made the stock go up and down. However, the ad business is doing well on its own.
Netflix is using new ways to show ads. Co-CEO Greg Peters said the company now uses interactive video ads that can change depending on what viewers like. Netflix has more than 190 million active users every month. People who pay for ads spend less than full subscribers, but better ad technology is helping make more money from them.
The company’s financial results are strong. In the last quarter of 2025, Netflix earned $12.05 billion, up 17.6% from the previous year. Earnings per share were $0.56. If ad revenue reaches $3 billion in 2026, ads could be about 6% of total revenue. Netflix also grew its subscribers to 325 million by the end of 2025.
Netflix stock costs around $83 per share. Analysts think it could go up to $116. The price-to-earnings ratio is low compared to the past, which could be good for investors. However, competition from Disney+, Amazon Prime, and other streaming platforms is still a risk.
For someone thinking about investing $1,000, Netflix has clear chances to grow. The ad business is expanding, and its huge number of users makes it valuable for advertisers. At the same time, high content costs and competition are things to watch.
In short, Netflix is showing that combining streaming and ads can help the company grow. It's growing ad revenue, more subscribers, and new ways to show ads make it an interesting stock. Investors should still be careful and think about spreading their money across other investments.
Also Read: Netflix (NFLX) Stock: Decline Amid Regulatory Scrutiny and Rival Paramount's Interest in WBD
