Netflix's Ad Revenue Surges to $1.5 Billion: Is This the Best Stock to Buy Today With $1,000?

By Danny Vena, CPA – Feb 25, 2026 at 2:45AM ESTKey PointsNetflix investors have been focused on the potential acquisition of the studio and streaming assets of Warner Bros. Discovery. The streaming giant's advertising revenue grew by 2.5x in 2025 and is expected to double again in 2026.Netflix's increasing scale, unmatched data, and strong measurement capabilities make it a platform advertisers can't ignore.We’re bullish on these 10 stocks ›NASDAQ: NFLXNetflixMarket Cap$329BToday's Changeangle-down(2.72%) $2.07Current Price$78.09Price as of February 24, 2026 at 3:59 PM ETWhile investors are focused on a potential blockbuster deal, the streamer's biggest growth driver is hiding in plain sight.Netflix (NFLX +2.72%) have been distracted of late, and it's easy to understand why. Late last year, the company agreed to acquire studio and streaming assets from Warner Bros. Discovery in a deal valued at $72 billion. While the agreement was initially welcomed by shareholders, it kicked off a contentious takeover bid and proxy battle by Paramount Skydance, and the ensuing drama continues to this day. Even without the streaming and studio assets from Warner Bros., the streaming giant's biggest growth driver is hiding in plain sight. Does this make Netflix the best stock to buy today with $1,000? Image source: Netflix. It all "ads" up Late last month, during its earnings presentation with investors, Netflix provided some details on the progress of its advertising tier -- and the results were eye-catching. Co-CEO Greg Peters noted that the company's ad revenue more than doubled in 2025, rising 150% to $1.5 billion, accounting for about 3% of Netflix's full-year revenue -- yet that could be just the beginning. Peters said (emphasis mine), "We expect that business to roughly double again in 2026 to about $3 billion. So we're making good progress, and the opportunity ahead of us is massive." Netflix is forecasting revenue of about $51.2 billion at the midpoint of its guidance for the coming year. If the company's ad revenue doubles again in 2026 -- and there's no reason to believe it won't -- it would account for nearly 6% of Netflix's total revenue -- not bad for a side hustle. Management is accelerating the company's ad strategy, as Netflix moves to "improve our ad capabilities," according to Peters. "We can drive more revenue. We've seen exactly the ability to do that over the last year. We've expanded demand sources. We continue to prove our speed of execution on our own adtech stack. That's more ad features, ads products, more measurement, etcetera." He went on to suggest that the focus over the next several years will be on increasing monetization and growing the company's ad inventory. ExpandNASDAQ: NFLXNetflixToday's Change(2.72%) $2.07Current Price$78.09Key Data PointsMarket Cap$329BDay's Range$75.21 - $78.1152wk Range$75.01 - $134.12Volume1.4MAvg Vol46MGross Margin48.59% The company continues to introduce new ad formats, and one of the most intriguing opportunities is interactive video ads. Netflix has a treasure trove of first-party data, allowing it to target these hybrid ads based on viewer behavior. Netflix reportedly has more than 190 million monthly active viewers. While the company's ad-tier subscribers don't bring in as much revenue as its full-priced subscribers, Netflix is working to close that gap. The company's increasing scale, targeting data, and measurement capabilities make it a platform advertisers can't ignore. The uncertainty caused by the will-they-or-won't-they acquisition of Warner Bros. has driven Netflix stock down by 42% -- but I believe the decline is overdone. With $1,000, investors can get 12 shares of Netflix stock (as of this writing). Moreover, its price-to-earnings (P/E) ratio of 30 is near a three-year low, suggesting plenty of upside for investors willing to accept a little volatility.Read NextFeb 25, 2026 •By Trevor Jennewine2 Stock-Split Stocks to Buy Before They Soar 95% and 103%, According to Wall Street AnalystsFeb 24, 2026 •By Bram BerkowitzBillionaire Investor Philippe Laffont's Hedge Fund Sold Its Entire Stake in The Trade Desk and Increased Its Position in This Streaming Giant by 17xFeb 23, 2026 •By Rich SmithWhy Netflix Stock Just DroppedFeb 22, 2026 •By Trevor Jennewine1 Stock-Split Stock to Buy Before It Soars 90%, According to a Wall Street AnalystFeb 22, 2026 •By Danny Vena, CPA3 Stock-Split Stocks to Buy Before They Soar Between 73% and 149% According to Select Wall Street AnalystsFeb 19, 2026 •By Robert IzquierdoIs Netflix Stock a Buy, Sell, or Hold in 2026?About the AuthorDanny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.TMFLifeIsGoodX@dannyvenaStocks MentionedNetflixNASDAQ: NFLX$78.09 (+2.72%) $+2.07Warner Bros. DiscoveryNASDAQ: WBD$29.16 (+0.81%) $+0.23Paramount SkydanceNASDAQ: PSKY$10.39 (1.61%) $0.17*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.