Netflix at $88 Eyes $1 Trillion Valuation on Ad Momentum

Netflix shares trade near $88 with a $376 billion market cap as analysts debate a potential path to $1 trillion valuation. The stock has fallen nearly 25% from year-ago levels despite strong fundamentals, including Q1 revenue of $12.25 billion. Over the past week, coverage highlighted rapid growth of the ad-supported tier to 250 million monthly active viewers, up from 70 million in 2024 and 190 million last November. Management raised 2026 free-cash-flow guidance to $12.5 billion while targeting a $3 billion ad-revenue run rate from more than 4,000 advertisers. Bullish models now see potential price targets of $327–$350 by 2027 if ad monetization and margin expansion continue.