Netflix Ad Revenue Hits $1.5B: Are These the Best Stocks to Buy Today?

Netflix’s advertising business just flexed its muscle, with ad revenue surging past $1.5 billion in 2025—more than 150% growth year over year. The streaming giant’s pivot to an ad-supported tier is paying dividends, and company executives now expect this segment to roughly double again in 2026, reaching approximately $3 billion. For investors considering where to allocate $2,000, Netflix presents an intriguing case study: explosive growth in a new revenue stream, but also significant strategic uncertainty.

How Netflix Became a Streaming Powerhouse in Ad-Supported Business

Netflix took its time entering the ad game. Co-founder Reed Hastings actually rejected the idea of advertising back in 2020, but competitive pressures and a subscriber crisis in early 2022—when the platform lost 1.2 million users in just six months—forced a reckoning. In November 2022, Netflix finally launched its cheaper, ad-supported tier, reversing years of resistance.

The move proved shrewd. Management deserves credit for recognizing when the market had shifted. Netflix’s leadership has a track record of bold strategic pivots: international expansion, heavy investment in original content, and now capturing ad revenue from price-conscious households. With a stock that has appreciated nearly 21,000% over two decades, it’s clear the executive team knows how to navigate disruption.

The advertising business is now following an accelerating trajectory. Ad revenue doubled in 2024, then jumped more than 150% in 2025. Why is Netflix succeeding where other streamers are still struggling? The platform boasts unmatched advantages: premium content libraries, massive engaged user base, low subscriber churn, and sophisticated audience data for advertisers. These factors have allowed Netflix to convert its user dominance into advertising scale remarkably quickly.

The Investment Opportunity: Evaluating Netflix Stock at Current Valuations

With Netflix shares trading near three-year lows on a price-to-earnings basis, the stock looks superficially attractive. At the current price around $82-85 per share (as of late January 2026), $2,000 would purchase roughly 24 shares. Traditional valuation metrics suggest the stock is reasonably priced compared to its historical averages.

The growth narrative is compelling. Ad revenue transformation creates a new profit center without cannibalizing subscription revenue. The company now captures value from budget-conscious viewers who previously weren’t customers. Executives have demonstrated they can execute on this transition, and the revenue growth trajectory supports optimism about future earnings.

However, valuation alone doesn’t tell the full story for potential buyers considering Netflix as one of the best stocks to buy today.

Warner Bros. Deal Introduces New Variables for Potential Buyers

Here’s where the picture gets complicated. Netflix announced plans to acquire Warner Bros. Discovery assets, and the company will need to raise $42 billion in debt financing to close the transaction. This level of leverage fundamentally changes the risk profile for shareholders.

Taking on significant debt during a period of strategic transition introduces multiple uncertainties. The combined entity’s operating structure remains unclear. Integration risks could delay revenue synergies. Management’s attention will be split between operational execution and deal completion. For conservative investors, this represents genuine business risk beyond typical market volatility.

The question becomes: Is Netflix at current valuations still one of the best stocks to buy today given these complications? The ad business growth is real and impressive, but new debt constraints and integration uncertainties make this less of a clear-cut investment case than the headlines suggest.

The Bottom Line for Your $2,000

Netflix’s transformation into a two-revenue-stream business is genuine progress. The ad tier is growing faster than even optimistic forecasts suggested, and management has proven it can execute on major strategic shifts. From a pure growth perspective, the numbers are attractive.

Yet for investors specifically searching for the best stocks to buy today with limited capital, Netflix requires deep consideration of the Warner Bros. deal implications. The $42 billion debt load, integration risks, and near-term uncertainty may warrant caution. The ad business momentum is real, but so are the complications ahead.

This isn’t necessarily a reason to avoid Netflix entirely, but rather a reminder that impressive growth metrics don’t eliminate investment risk. Those buying shares should do so with full awareness that the company is entering a complex transition period—one that could deliver substantial returns or create meaningful headwinds depending on execution.