Netflix stock surges on latest upgrade

Netflix shares flourished on Wednesday after Atlantic Equities upgraded the stock from Neutral to Overweight, citing upside potential of ad-supported tier. Advertising estimates are seen as able to boost revenue by $6.7 billion over the next three years and that the average revenue.

Analysts from Citigroup raised their price targets on the stock, citing the company’s move into advertising. Netflix estimated that its ad-supported tier will reach 40 million viewers by the end of next year. Executives at Netflix and its advertising partner Microsoft met with ad buyers in recent weeks.

“We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made,” a Netflix spokesperson told Yahoo Finance earlier this month.