Shares of Netflix (NASDAQ: NFLX) were moving higher today after the streaming giant said it received strong advertising demand in its upfront ad sales, which were up more than 150% from 2023. The data point, which Netflix provided in a blog post this morning, is the latest evidence showing that its advertising business is thriving, even at a time when its legacy media rivals are struggling.
As of 12:22 p.m. ET, Netflix stock was up 1.5% for the day after gaining as much as 3.3% earlier in the session. The streaming stock also topped $700 a share for the first time ever, hitting an all-time high of $711.33.
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It's all coming together for Netflix
Over the last few years, Netflix has thrown out a lot of its sacred cows in order to continue growing. Co-founder Reed Hastings had sworn off advertising, but in the post-pandemic malaise, the company launched an ad tier, arguing that advertisers wanted to follow viewers. Similarly, Netflix has started embracing live events, like sports, after eschewing them for nearly its entire history.
The latest update on the advertising platform shows it continues to grow like gangbusters, and the company has added nearly 40 million subscribers over the last year. Advertisers want a piece of Netflix's audience, which is approaching 300 million households. The company's streaming-first business model gives brands the ability to do more than they can with linear TV and more accurately measure their results.
Netflix said it's seen upfront commitments from all key verticals, including auto, retail, quick-service restaurants, consumer packaged goods, and tech and entertainment.
Netflix's rivals are stumbling
Netflix's growth comes as its legacy rivals continue to stumble. Warner Bros. Discovery just took an impairment charge of nearly $10 billion, and its stock price continues to plumb new depths. Disney shares are trading near decade lows as it's struggled to grow its streaming audience, and Paramount Global 's shares are flailing around as the company searches for a potential buyer.
That's opened up an opportunity for advertisers who are eager to meet audiences where they are, and Netflix remains the clear leader in the streaming industry . As the advertising business continues to ramp up, Netflix stock should keep chugging higher.
Jeremy Bowman has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy .
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