Netflix to Acquire Warner Bros, Advertising Revenue Hits $1.5 Billion in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
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Source: Yahoo Finance
- Advertising Revenue Surge: Netflix's advertising revenue doubled year-over-year in 2024, reaching $1.5 billion in 2025, which, while only a fraction of its total revenue of $45.2 billion, could significantly enhance overall profitability if growth continues at this pace.
- User Growth Dominance: By the end of 2025, Netflix boasted over 325 million paying subscribers, far surpassing Amazon Prime and Disney+'s 200 million and 131.6 million users, respectively, thereby solidifying its market leadership and ensuring future revenue growth potential.
- Acquisition Impact: Netflix's plan to acquire Warner Bros. for $82 billion, which owns popular IPs like Harry Potter and Game of Thrones, could greatly enhance its content library and advertising business, but may also raise antitrust concerns from regulators.
- Attractive Stock Valuation: With earnings of $2.53 per share in 2025 and a current P/E ratio of 33, Netflix's projected earnings of $3.12 per share in 2026 suggest a forward P/E of 26.6, indicating strong investment return potential despite market volatility ahead.
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 85.700
Low
92.00
Averages
129.47
High
152.50
Current: 85.700
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
