Netflix's Password-Sharing Crackdown Is Here. Can It Turn Around the Stock?
The day has come. Netflix (NASDAQ: NFLX) has enacted its password-sharing monetization strategy. Gone are the days of using your parent's or friend's Netflix account for free, as Netflix now requires extra user slots to be purchased for $8 more per month if the viewer doesn't reside in the same household as the main account holder.
But what does this mean for the stock? Should investors pile into Netflix's stock in anticipation of this additional revenue flow? Or is this just a passing story? Let's find out.
The effect of Netflix's password-sharing crackdown could be massive. Management estimated more than 100 million households worldwide would be affected by the change. Simple math indicates this could add as much as $9.6 billion annually to Netflix's $31.6 billion revenue stream.
Source Fool.com
Netflix Inc. Stock
Currently there is a rather positive sentiment for Netflix Inc. with 81 Buy predictions and 8 Sell predictions.
As a result the target price of 608 € shows a slightly positive potential of 4.99% compared to the current price of 579.1 € for Netflix Inc..
