NFLX - Netflix's Ads Business Is Taking Off
2023-10-19 07:33:00 ET
Streaming TV service specialist Netflix 's (NASDAQ: NFLX) third-quarter report Wednesday afternoon showed shareholders that its efforts to reaccelerate revenue growth are working. Q3 revenue rose nearly 8% year over year -- up from 3% growth in the prior quarter. Even more, the company laid out several reasons to expect more robust growth going forward. Suffice it to say, it was a good update for shareholders.
Though there was a lot to like in the report, one of the most exciting insights management provided was about the early momentum of its ads business. Sure, it's not a material business yet. But there are some early signs that this nascent revenue driver has the potential to transform into a massive catalyst.
Sure, Netflix's ads business remains small. The company didn't launch ads until late 2022, so these are still early days for this important part of the streaming service specialist's business. But that doesn't mean investors can't look for signs of a promising future for this new revenue stream.
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Netflix's Ads Business Is Taking Off