Three Reasons to Invest in Netflix Stock Before July 16
, there were doubts about how well an ad-supported tier would fit with a platform based on uninterrupted streaming. But those doubts seem to be a thing of the past now. Netflix’s ad-supported tier reached 250 million global monthly active viewers by its Upfront presentation in 2026, a significant increase from 190 million in late 2025. The company is on track to double its advertising revenue to $3 billion in 2026, following a previous doubling to $1.5 billion in 2025. What’s even more impressive is that over 80% of ad-tier members watch weekly, showing strong engagement that is attractive to advertisers.
When Netflix reports its Q2 results on July 16, what I’ll be paying attention to is not just the headline revenue number, but any updates on its path to reaching $9 billion in ad revenue by 2030. This figure could reshape how investors view the company’s long-term earnings potential. If management provides more insights on advertiser retention or tightens its guidance on ad revenue growth, it could potentially move the stock.
Live sports is also playing a pivotal role in driving ad revenue growth for Netflix. It’s not just about attracting new subscribers anymore; it’s also about capitalizing on advertising opportunities. Netflix is testing dynamic ad insertion technology with WWE programming and plans to expand it to NFL Christmas Day games. The addition of live events like the Westminster Dog Show and international NFL coverage further enhances its advertising appeal. Live programming is known for higher viewer retention and advertisers are willing to pay more for it, which could give Netflix a competitive edge in ad pricing.
Looking ahead to the second half of the year, margins could be a pleasant surprise for investors if content spending eases off while revenue growth remains strong post-Q2. With content spending weighted towards the first half of the year, hitting or surpassing its margin targets in the first half could pave the way for margin expansion in the second half. If Netflix can maintain its revenue growth momentum while controlling costs, operating leverage could become more visible and positively impact the stock price.
It’s important to note that Netflix no longer reports quarterly membership numbers, making it challenging to verify growth claims independently. The streaming landscape is also rapidly evolving with competitors like Amazon and Apple in the mix. If ad revenue growth falls short of expectations or if cost management falters in the second half, the outcomes on July 16 could sway in a different direction.
In conclusion, Netflix’s upcoming earnings report on July 16 could provide valuable insights into the company’s growth trajectory. The focus on expanding its advertising business, leveraging live sports content for ad revenue, and potential margin expansion in the second half are key areas to watch. With Netflix continuously seeking new revenue opportunities within its seemingly saturated market, this earnings report could be a pivotal moment to assess its growth potential and future prospects.
