Netflix shares rose nearly 3% on Monday after the company reiterated its optimistic revenue forecast for 2025. This announcement reassured investors of stability despite fears of a global recession triggered by US tariff policies.
Co-CEO Greg Peters highlighted Netflix’s proven resilience during past economic slowdowns and noted that the company continues to attract a large number of subscribers.
“We still see hundreds of millions of people signed up,” Peters said, adding that there hasn’t been a noticeable change in user behavior. Peters’ remarks helped ease investor concerns amid worries that President Donald Trump’s tariffs could slow the economy and lead to a decline in non-essential spending such as streaming services. Jeffrey Wlodarczak of Pivotal Research Group highlighted the platform’s strong value proposition, saying, “Even in a global recession, Netflix retains its appeal because of its affordability.” The company also stated that its growing advertising segment is a significant driver for future revenues. Netflix has reaffirmed its year-end revenue forecast of between $43.5 billion and $44.5 billion, exceeding expectations with first-quarter earnings. Another notable point is that the ad-supported subscription option accounts for 55% of new subscriptions in eligible markets. Following the results, at least 19 brokerage firms raised their price targets for Netflix; the current median target is $1,147.50.
