Is Netflix, Inc. (NFLX) Becoming a Bigger Advertising Growth Story in 2026?

We recently compiled a list of the 10 Most Widely Held Stocks by Individuals in 2026. Netflix, Inc. (NASDAQ:NFLX) is one of the most widely held stocks.

TheFly reported on May 14 that TD Cowen reiterated its Buy rating on NFLX and maintained a $112 price target. The firm highlighted disclosures from NFLX’s upfront presentation showing continued expansion of its advertising-supported tier, with global monthly active users rising to 250 million from 190 million in November 2025. The company also outlined plans to expand the ad-supported offering into 15 additional markets starting next year while enhancing programmatic advertising tools for advertisers. TD Cowen noted that NFLX expects advertising revenue to reach $3 billion in 2026, contributing a significant share of incremental growth and reinforcing the importance of the ad-supported segment in its overall monetization strategy.

On the same day, it was reported that Netflix, Inc. (NASDAQ:NFLX) has been developing an internal production studio called INKubator focused on using generative artificial intelligence to produce short-form animated content. The initiative appears to be in early stages, with hiring activity reported across roles such as producers, software engineers, and computer graphics artists based on recently posted job listings.

Although the company has not formally announced the project, online professional profiles suggest the studio began operating quietly around March. The effort reflects NFLX’s exploration of AI-assisted content creation tools and expanding its internal production capabilities for animation and digital storytelling formats.

Netflix, Inc. (NASDAQ:NFLX) is a global streaming platform that offers TV shows, movies, documentaries, and games to hundreds of millions of subscribers worldwide.

While we acknowledge the risk and potential of NFLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFLX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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