I have lost entire evenings to the Netflix (NFLX) home screen, where I sit down to watch one thing, scroll past a few hundred thumbnails, and somehow end up watching nothing at all.
If that sounds familiar, Netflix has heard you. The company that turned endless scrolling into a national habit now says it can fix the very problem it helped create.
Netflix Turns to Generative AI to Solve Choice Paralysis
Speaking at the Bloomberg Tech conference in San Francisco on Wednesday, Netflix chief product and technology officer Elizabeth Stone said the company is using generative artificial intelligence to help users handle the sheer size of its catalog.
- Stone described a growing consumer frustration: There is so much to watch, and no easy way to know what fits the moment.
- To tackle it, Netflix is already pairing AI with natural language processing to suggest titles based on a viewer's mood.
- Netflix is also testing a voice search tool to make the experience feel more personal and interactive.
- Recommendations are the product, as most of what people watch comes from what Netflix surfaces rather than what they search for.
- That makes the "what should I watch" screen the most valuable real estate the company owns.
Of course, the overload Stone wants AI to fix is partly the result of Netflix's own strategy of commissioning shows at high volume. The problem and the cure come from the same place.
Netflix Continues to Grow at a Steady Pace
Netflix ended 2025 with more than 325 million paying households.
Co-CEO Greg Peters told analysts the audience is now approaching 1 billion people, yet the company still accounts for only about 5% of global TV viewing time. In other words, there is a huge amount of watch time still up for grabs, and the easiest way to win it is to help people press play faster.
Peters said Netflix sees recommendations as a "force multiplier" for its giant content budget, and that newer AI models are already driving more engagement.
Netflix is also working hard to calm fears that AI will replace people. At an industry event this week, Larry Tanz, the company's vice president of content for Europe, the Middle East, and Africa, said AI is "an evolution of tools we already know — not a replacement for human creativity."
Tanz said any new tool has to pass one test: Does it help creators make better stories and help viewers find them? He added that Netflix cares deeply about copyright and fair pay and is building consent into its use of digital replicas of actors.
Co-CEO Ted Sarandos echoed the point on the earnings call, saying generative AI will "make content better." The company recently bought InterPositive, an AI firm built specifically for filmmakers, to speed up that work.
For the roughly 325 million households paying every month, the payoff could be simple. Less scrolling, more watching. And maybe a few of those lost evenings handed back.
What Is the NFLX Stock Price Target?
Analysts tracking Netflix stock forecast revenue to increase from $45.18 billion in 2025 to $80 billion in 2030. In this period, adjusted earnings per share are forecast to expand from $2.53 to $6.16.
If NFLX stock is priced at 24.5x forward earnings, which is similar to the current multiple, it could surge 85% from current levels, within the next four years.
Out of the 49 analysts covering Netflix stock, 31 recommend “Strong Buy,” five recommend “Moderate Buy,” and 13 recommend “Hold.” The average NFLX stock price target is $116, above the current price of $82.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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