Netflix, Inc.: Ad(d)ing to the opportunity

Research evidence excerpt

Netflix, Inc.: Ad(d)ing to the opportunity

rategy to grow advertising Stock Data

revenue and global reach (as seen with the strength of the WBC in Japan last quarter),

with games available in more than 200 countries. While financial terms weren’t Price 87.02 USD

disclosed, the deal is part of Netflix’s broader plan to ramp investment in content (we Price Objective 125.00 USD

forecast ~$20bn in content spend in CY26), including sports. We anticipate NFLX will Date Established 6-Mar-2026

continue to add live sports and events to the content portfolio, consistent with their Investment Opinion B-1-9

strategy of a few big events per quarter (i.e. not focused on full regular season packages 52-Week Range 75.01 USD - 134.12 USD

or tonnage). Mrkt Val (mn) / Shares Out 377,701 USD / 4,340.4

(mn)

Free Float 99.3%TAM runway remains long

Despite the company’s position as streaming leader, NFLX still represents only about 5% Average Daily Value (mn) 3499.26 USD

of global TV viewership and under 45% of its addressable market, leaving substantial BofA Ticker / Exchange NFLX / NAS

room for future growth. Per our latest forecast, NFLX has ~330mn subscription Bloomberg / Reuters NFLX US / NFLX.OQ

households against a (growing) TAM of ~800mn global households with a smart TV, ROE (2026E) 51.1%

suggesting subscriber growth remains an opportunity both in mature and emerging Net Dbt to Eqty (Dec-2025A) 20.4%

markets. Top line growth will likely continue to be driven by a balance of new members,

pricing and advertising.

Reiterate Buy and $125 PO NFL = National Football League

We reiterate our Buy rating and $125 PO. In our view, NFLX shares will be fueled by

NFLX = Netflix, Inc.continued positive subscriber and earnings momentum in addition to a long runway for