Investors Should Start to Question Netflix's Pricing Power
When Netflix (NASDAQ: NFLX) reported 2022 first-quarter financial results on April 19, what captured the market's attention was a loss of 200,000 subscribers during the period. Making matters worse was management's expectation of losing another 2 million customers in the current quarter. Unsurprisingly, the stock immediately crashed 35% following the announcement.
For a business that was growing rapidly over the past decade, adding tens of millions of new members every year and increasing revenue at a brisk rate, the dramatic slowdown is raising questions about the streaming company's prospects. And investors have a lot to think about.
Topping the list of what shareholders should start to question is Netflix's pricing power. Let's take a closer look.
Source Fool.com
