09:21 AM EDT, 10/18/2024 (MT Newswires) -- Netflix's ( NFLX ) strong Q3 results are keeping investors comfortable with the streaming giant's efforts to add advertising streams, and they will remain comfortable as long as revenue can grow more than the low teens with margins expansion, Oppenheimer said Thursday in a note.

Netflix ( NFLX ) on Thursday posted Q3 EPS of $5.40 on revenue of $9.82 billion. Analysts polled by Capital IQ expected $5.12 on $9.77 billion.

The streaming giant reported more than 50% of sign-ups in ads markets, up from more than 45% in 2Q, Oppenheimer said. While ads subscribers increased 35% sequentially in Q3 compared with 34% quarterly growth in Q2.

Oppenheimer said it lowered its revenue estimates for 2025 and 2026 by 4%, however, due to the lack of updates on future pricing plans.

Netflix ( NFLX ) shares were up 6.9% in recent Friday premarket activity.

Oppenheimer increased its price target on Netflix ( NFLX ) to $825 from $775 previously.

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