Netflix (NFLX) has maintained a strong lead in the streaming industry with competitors unlikely to catch the company as it predicts an increase in users and subscription revenue, Wedbush said in a note to clients on Monday.

The streaming service increased subscription prices in Q1 for some markets including the US, UK and Argentina with additional hikes planned for other countries, the investment firm said. The number of subscribers increased by over 41 million in 2024, and higher prices could result in an increase in future earnings estimates, Wedbush said.

The company plans content investments of $18 billion in 2025, boosting movies, series, games and live events, which could provide additional growth opportunities, the analysts said. The advertising-supported subscription tier is expected to contribute to Netflix's revenue from 2026 onwards, driven by improved ad targeting and expanded content offerings.

Netflix's management provided optimistic guidance for Q2, forecasting revenue of $11.04 billion and EPS of $7.03 after Q1 results exceeded street estimates, Wedbush said. The firm maintained an outperform rating and raised Netflix's price target to $1,200 from $1,150.

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