Netflix: Success Of Ads Business Has Become More Vital Than Ever

Netflix delivered another strong quarter, beating revenue and EPS estimates, driven by a diversified global content slate and robust operating margins. Raised full-year guidance is largely due to FX tailwinds, highlighting the need for the ads business to become the next growth catalyst. Valuation remains attractive with a price target of $1,345, but limited near-term upside and emerging risks warrant a cost-averaging approach.