A top-rated analyst has given Netflix (NFLX) a thumbs up, praising its upgraded TV interface. The new redesign aims to deliver a more personalized experience by giving users real-time recommendations based on their viewing habits and search history. The improvements are seen as key to boosting viewer engagement and driving future subscriber growth.
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BMO Capital Analyst Reaffirms Buy Rating
Following the announcement, five-star-rated analyst Brian Pitz at BMO Capital reiterated his Buy rating on NFLX stock. He highlighted Netflix’s new TV experience includes better content recommendations using AI for both TV and mobile, and a more interactive way to help users find shows and movies. Pitz stated that these new features are expected to help Netflix keep more subscribers, boost viewer activity, and increase ad revenue.
Pitz also addressed the potential tariffs on internationally produced films mentioned by President Trump. He highlighted that Netflix’s strategy of localizing content in over 50 countries and sourcing licensed titles globally could help mitigate the impact of tariffs, ensuring the viewer experience remains unaffected.
Key Metrics from Netflix’s Latest Results
Netflix’s latest earnings report delivered solid results, showcasing continued subscriber growth and improving margins. Here’s a quick look at the key metrics from Main Street Data, investors should know.
In Q1 2025, Netflix saw a significant revenue boost, with the Asia Pacific region leading with a 23% year-over-year growth, generating $1.26 billion. EMEA followed with a 15% increase, reaching $3.4 billion. These figures highlight Netflix’s effective strategy of expanding into global markets. A key factor behind this success is the company’s focus on content localization, adapting its offerings to fit regional preferences.
Additionally, Netflix made strides in cost control, reducing operating expenses. Marketing spend dropped to $688 million from $976 million in Q4 2024, improving margins and showcasing the company’s focus on operational efficiency.
Is Netflix a Good Stock to Buy?
Turning to Wall Street, NFLX stock carries a Strong Buy consensus rating. Among the 386 analysts covering the stock, 28 have issued Buy recommendations, and eight rate it as Hold. Moreover, the average Netflix stock price target of $1,165.35 implies a 1.64% upside potential from current levels.
Year-to-date, NFLX stock gained 29%.
