Netflix Inc.’s stock is soaring more than 10% Thursday, on pace for its highest close in more than a year and within striking distance of its highest close since April 5, 2022, when it closed at $380.15.
The video-streaming giant, which just announced it has 5 million subscribers to its ad-supported service, is enjoying its biggest percentage jump since Oct. 19, 2022, when it catapulted 13%. Netflix
NFLX,
shares are currently at $374.10.
“We and investors have generally viewed Netflixʼs embrace of advertising as a defensive move forced by the slowdown in revenue growth in early 2022,” LightShed analyst Richard Greenfield wrote in a note Thursday. “Yet, when you
think about the speed at which Netflix is ramping advertising [average revenue per user] and innovating, you cannot help but wonder if it ends up being an aggressive offensive move.”
He added: “[W]ith 25% of Netflix gross adds taking the ad-tier already and churn likely 2-3% per month, one can see just how big a business advertising can be for Netflix in the next five years.”
