Netflix Is Entering Its Most Powerful Phase Yet

I rate Netflix a buy, with a fair value estimate of $92—27% upside—driven by subscription, advertising, and live programming monetization. NFLX’s scale enables global content leverage, selective price increases, and margin expansion, with 2026 revenue guidance of $51.0B–$51.4B and a 31.5% operating margin. Advertising and live programming offer incremental growth without major platform rebuilds; ad revenue is projected at $3B in 2026, with rapid growth potential. Risks include monetization outpacing engagement, rising content costs, and increased competition; margin or revenue growth shortfalls could warrant a reassessment.

I would give Netflix (NFLX) a Buy rating. The best case here isn’t just the continued replacement of linear TV viewing by video streaming. There are also three monetization opportunities: the subscription model, the advertising.