Netflix survey results steady in Q3, strong indicators for Q4, says Wedbush

Wedbush says that while Netflix (NFLX) no longer reports subscriber additions and revenue per member metrics, the firm’s survey results, data, and advisors suggest that subscriber growth continues, subscribers have absorbed the price increases with little resistance, and Netflix’s advertising engine is beginning to hum. Wedbush expects ad revenue to become Netflix’s primary revenue driver beginning in 2026. Netflix can accelerate ad revenue contribution for the next several years by adding and improving live events, enhancing ad targeting, expanding ad partnerships, and broadening its content strategy, the firm argues. Its premium and ad subscribers are engaged, and churn is limited. As Netflix grows, its contribution margin can easily exceed our estimates, driving outsized free cash flow, it adds. As such, Wedbush reiterates an Outperform rating on the stock with a price target of $1,500 on the shares.