Why Netflix Stock Hits All-Time High Today
Netflix’s advertising business continues to grow rapidly.
stock of Netflix (NFLX 1.13%) The streaming giant’s stock rose today after it said it had seen strong ad demand for up-front ad sales, with sales up more than 150% in 2023. The data points Netflix provided in a blog post this morning are the latest evidence that its advertising business is thriving even as traditional media rivals struggle.
As of 12:22 p.m. ET, Netflix shares were up 1.5% for the day after rising as much as 3.3% earlier in the session. The streaming stock also broke $700 per share for the first time ever, hitting an all-time high of $711.33.
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Everything is coming together on Netflix.
Over the past few years, Netflix has abandoned many sacred cows in order to continue growing. Co-founder Reed Hastings vowed to stop advertising, but in the post-pandemic downturn, the company launched an ad tier, claiming that advertisers wanted to follow viewers. Similarly, Netflix has begun embracing live events like sports after avoiding them for nearly its entire history.
The latest update to its advertising platform shows that it continues to grow like a gangbusters, with the company adding about 40 million subscribers last year. Advertisers want a piece of Netflix’s audience, which reaches 300 million households. The company’s streaming-first business model gives brands the ability to do more than they can with linear TV and measure results more accurately.
Netflix said it has pre-orders from every major industry, including automotive, retail, fast food, consumer goods, technology and entertainment.
Netflix’s competitors are stumbling
Netflix’s growth has come as its traditional competitors continue to struggle. Warner Bros. Discovery It has taken a hit of nearly $10 billion and its stock price continues to plunge. Disney The stock is trading near a decade low as it struggles to grow its streaming audience. Paramount GlobalThe company’s stock price is fluctuating as it seeks out potential buyers.
This has opened up opportunities for advertisers who want to reach their audiences as they are, and Netflix remains the clear leader in the streaming industry. As its advertising business continues to grow, Netflix’s stock price will continue to rise.
Jeremy Bowman holds positions at Netflix and Walt Disney. The Motley Fool holds positions at and recommends Netflix, Walt Disney, Warner Bros. Discovery, and The Motley Fool has a disclosure policy.
