Netflix’s (NFLX) New Initiatives Will Be Positive, Bank Says

Netflix’s (NFLX) upcoming launch of multiple, new high-tech features will be significantly positive for NFLX, BMO Capital wrote in a note to investors today.

The bank kept a $1,200 price target and an Outperform rating on the name.

Photo by Thibault Penin on Unsplash

BMO’s Take on NFLX’s Initiatives

NFLX will start utilizing AI to help its users find content while redesigning its user interface and making content discovery more interactive, BMO reported.

These moves will lower the number of customers dropping the service, increase its viewership, and raise the firm’s ad revenue, the bank predicted.

BMO’s View of Tariffs’ Impact on NFLX

The company’s policy of generally streaming locally produced content to its viewers, along with its cost-effective sourcing of content, should enable it to keep providing a good user experience while maintaining its pricing power, even if tariffs are imposed on TV shows and movies, BMO Capital believes.

More Information About NFLX

Analysts on average expect the company’s earnings per share to climb to $25.78 this year from $19.83 in 2024. The average estimate calls for its EPS to rise to $30.78 in 2026.

In the last month, the shares have advanced 22%, while they have gained 15% in the last three months.

While we acknowledge the potential of NFLX, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.