Netflix to Launch Ads in November -- Is the Stock a Buy?
After months of speculation regarding the details, streaming-video service Netflix (NASDAQ: NFLX) is officially ready to launch its ad-supported tier. According to the company, users from multiple countries, including the U.S., can subscribe to the new "Basic with Ads" plan starting on Nov. 3.
Netflix's move toward ads is the most anticipated move from the company in years. And yet, this might be an anticlimactic event for shareholders. Here's why I wouldn't buy Netflix stock based solely on the launch of its ad-supported tier.
Here's the context for the company's move toward ads. After years of rapid growth, Netflix's user growth stalled in 2022. Peak membership occurred in the fourth quarter of 2021, with 221.84 million paid memberships worldwide. In the first half of 2022, it lost roughly 1.2 million accounts. And that's a big reason Netflix stock is down about 60% year to date.
Source Fool.com
