Bernstein reiterates Buy on Netflix, sets $110 target amid live streaming push

Bernstein analyst Laurent Yoon has reiterated a Buy rating on Netflix, assigning a $110 price target that implies an upside potential of just over 41 per cent. The recommendation comes as the streaming giant’s shares have declined nearly 35 per cent over the past year, a move Yoon attributes to broader market volatility rather than fundamental weakness in the company’s operations.

Yoon described Netflix’s core business as rock solid, noting that the platform remains well-positioned to navigate challenges posed by rising content costs and intensifying competition from short-form video services. The analyst highlighted the company’s status as a low-cost global streaming platform with significant room for margin expansion, particularly within non-English speaking markets where growth potential remains strong.

In a strategic move to diversify its content offering, Netflix launched its first live programme, The Breakfast Club, on 1 June. Developed in partnership with iHeartMedia, the initiative marks the company’s entry into live programming, a sector traditionally dominated by linear television and radio. The collaboration aims to expand Netflix’s streaming base into live content and drive daily engagement through recurring formats.

Financial projections presented by Bernstein indicate that Netflix’s advertising revenue is expected to reach $3 billion by 2026. This growth trajectory supports the firm’s view that the company can continue to expand margins while maintaining its dominant position in the subscription video-on-demand market. The ad-supported tier has become a key lever for revenue diversification as the company balances its free and paid viewing options across devices.

While Yoon’s assessment focuses on Netflix’s operational resilience and strategic pivots, the source material also notes that other financial outlets may view artificial intelligence equities as offering greater upside potential and lower downside risk in the current market environment. Nevertheless, the analyst maintains that Netflix’s ability to adapt its business model through advertising and live content provides a compelling case for investor interest at current valuations.