Bank of America Cuts Salesforce Rating to Underperform, Forecasts Netflix $3B Ad Revenue
Bank of America reinstated its Underperform rating on Salesforce with a $160 price target, projecting fiscal 2027–28 revenue growth of about 11% and 9.6% and stable 34–35% operating margins. The firm also forecasts Netflix’s ad-supported tier will hit $3 billion in revenue in 2026 after reaching 250 million monthly viewers.
1. Salesforce Underperform Rating
Bank of America analysts reinstated an Underperform rating on Salesforce and set a $160 price target, implying roughly 10% downside from current levels. They anticipate revenue growth slowing to 11.1% in fiscal 2027 and 9.6% in fiscal 2028, with operating margins stabilizing at 34-35% as AI adoption intensifies competition and limits upsell potential.
2. Netflix Ad-Supported Tier Outlook
The firm projects Netflix’s ad-supported tier, which has grown from 94 million to 250 million monthly viewers, will generate approximately $3 billion in advertising revenue in 2026. Growth drivers include expanded live sports rights, including three additional NFL games, new international launches, and targeted ad formats like mobile vertical videos and podcasts.