Netflix’s advertising business is booming, reaching 190 million monthly active viewers globally in November 2025, up from 94 million in May 2024. Third-quarter 2025 revenues climbed 17.2% year over year to $11.51 billion, with plans to double ad revenues in 2025. Interactive ads, advanced targeting, and dynamic ad insertion are on the horizon for the streaming giant.

In the ad-supported streaming landscape, Disney and Amazon are pursuing unique strategies. Disney reported 196 million subscriptions in Q4 2025, with a domestic ad revenue increase of 8% year over year. Amazon’s ad services generated $17.7 billion in Q3 2025, driven by Prime Video’s 130 million monthly viewers in the U.S. Cross-platform ad opportunities are a focus for both companies.

Netflix’s stock has dropped 28.3% in the past six months compared to the industry’s decline of 13.8%. With a forward P/S ratio of 7.47X, Netflix appears overvalued compared to the industry’s 4.3X. The Zacks Consensus Estimate for 2025 earnings is $2.53 per share, indicating a 27.78% increase from the previous year.

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Read more at Nasdaq, Inc.: Netflix Ad-Tier Growth Accelerates: Is the Stock Finally Breaking Out?