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- Netflix partners with Amazon Ads, expanding ad capabilities to 11 major markets. Ad-supported tier growth prompts doubling of ad revenues in 2024 and 2025, with 55% of new sign-ups opting for the tier. Second-quarter 2025 revenues reach $11.08 billion, prompting raised full-year guidance to $44.8-$45.2 billion.
- Netflix’s Amazon partnership intensifies competition, pressuring Disney and Warner Bros Discovery to enhance programmatic capabilities. Disney relies on its own platform, while Warner Bros Discovery uses AI-driven ads. Paramount+ lacks scale compared to Netflix. The partnership may push rivals to pursue similar arrangements for competitiveness.
- Netflix stock gains 35% YTD, overvalued with a forward P/S ratio of 10.42X. Consensus estimates for 2025 show revenues at $45.03 billion and earnings at $26.06 per share, indicating a 31.42% increase from the previous year.
