Netflix stock climbed to a fresh record high on Tuesday after the streaming video leader reported a big jump in users of its advertising-supported service.
Netflix stock has hit record highs in each of the last five trading sessions.
On the stock market today, Netflix stock advanced 1.8% to close at 819.50. Earlier in the session, it reached an all-time high of 820.37.
In a report Tuesday, Amy Reinhard, president of advertising at Netflix, said the company had reached 70 million monthly active users for its ad-supported service. In May, the service had 40 million monthly active users.
Plus, over 50% of new Netflix sign-ups are for the ads plan in ad-supported countries, she said.
"As we celebrate two years since launching Netflix's ads business, we continue to see positive momentum and growth across all areas of the business," Reinhard said.
Netflix Stock Ranks First In Group
BMO Capital Markets analyst Brian Pitz reiterated his outperform rating on Netflix stock with a price target of 825 on Tuesday.
In a client note, Pitz said Netflix's lower-priced ad service tier is tracking well ahead of his bull case scenario. Pitz said he had expected Netflix to end 2025 with 60 million users for the service.
"With 70 million users and steady improvement in programmatic capabilities with The Trade Desk and Google DV 360, we are confident Netflix should onboard a meaningful share of the $20 billion-$30 billion of linear TV dollars that likely flows online in the next three years," Pitz said. Meanwhile, Netflix is developing in-house advertising technology.
Netflix stock ranks first out of 20 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 98 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
