The stock of Netflix has closed at a record high for the first time in three years, propelled by positive news concerning the company’s advertising revenue.
Shares of Netflix finished trading on Aug. 20 at $698.54 U.S., an all-time high and the first record close since Nov. 17, 2021, when the stock was at $691.69 U.S.
Year-to-date, Netflix stock has risen 49%, outpacing all other streaming companies. The shares have been boosted by strong financial results and an improving advertising environment.
Most recently, Netflix announced that it has achieved a 150% increase in advertising commitments compared to 2023.
The company said it has sold upfront advertisements against several popular television series and upcoming movie releases such as “Squid Game,” “Outer Banks” and “Happy Gilmore 2.”
Netflix said it has also seen robust ad sales against its slate of upcoming live sporting events that include WWE Raw, which launches on the streaming platform in 2025, and NFL games that are scheduled for Christmas Day this year.
Advertising is relatively new to Netflix. The company added a lower subscription tier that includes ads in 2023 after previously generating revenue solely through membership fees.
Netflix has also cracked down on password sharing and added live sports and entertainment events to its platform to bolster its subscriptions and financial results.
The success of Netflix’s strategy is being reflected in the company’s stock price, which is up 71% over the past 12 months.