In a remarkable show of confidence, Netflix shares surged nearly 3% on Monday after the streaming giant reaffirmed its annual revenue forecast, calming investor fears amid escalating tariff tensions.

Co-CEO Greg Peters emphasized the resilience of the entertainment industry, particularly Netflix, during economic downturns. He stated, "We haven’t noticed any significant changes in customer behavior, and there are still hundreds of millions of potential subscribers waiting to join."

This upbeat message was a welcome relief for investors spooked by fears that U.S. President Donald Trump's hostile tariff policies could trigger a recession, thus compelling consumers to cut back on discretionary spending, including their beloved streaming services.

Renowned analyst Jeffrey Wlodarczak from Pivotal Research Group weighed in, asserting, "Even in a global recession, Netflix is likely to remain robust as the service maintains an appealing price-to-value ratio." He also noted that Netflix's burgeoning advertising business is poised for impressive growth, considering its early stage.

Netflix has set an ambitious revenue target for 2025, anticipating earnings between $43.5 billion and $44.5 billion. Recent first-quarter earnings surpassed analysts' expectations, further buoying investor sentiment.

Highlighting the impact of its new ad-supported tier, Netflix revealed that this lower-cost option accounted for a staggering 55% of new sign-ups in countries where it is available.

Morgan Stanley analysts see 2025 as a pivotal year, predicting that Netflix will transition from relying on third-party advertising to launching its own suite of in-house advertising products. This move, they argue, will bolster revenue even if the economy slows down.

Following these positive developments, at least 19 brokerage firms raised their price targets for Netflix shares, with the median forecast climbing to an impressive $1,147.50.