15 AI News Investors Should Not Miss

4. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 103

Netflix, Inc. (NASDAQ:NFLX) is an American subscription video-on-demand over-the-top streaming service with 283 million paid memberships in over 190 countries. Streaming companies such as Netflix, Inc. (NASDAQ:NFLX) are using AI as their most adept tool for everything from personalization and content optimization to AI-driven closed captioning and language dubbing, and even optimizing streaming quality.

Netflix, Inc. (NASDAQ:NFLX) offers a cheaper, ad-supported tier powered by AI which was launched in late 2022 to enhance user experience and deliver more effective ads in the process. In an interview on “Squawk on the Street”, Jim Cramer highlights how the company’s innovative use of AI in its ad-supported tier places it “so far ahead of everyone else”. Cramer notes that Wall Street’s enthusiasm for the company’s stock is derived from the company’s “beat and raise” quarter which is eventually driven by its success in AI-based advertising.

Jim Cramer has a bullish take on the back of a strong quarter. The streaming giant is increasingly focused on growth in ad-tier memberships, with ad plans for the third quarter already accounting for 50% of the signups in the 12 countries where ads are currently available. According to co-CEO Gregory Peters, advertising is going to be Netflix’s key growth driver, projecting ad revenue to roughly double in 2025.