Should Investors Start Getting Excited About Netflix Stock Again?
Netflix's (NASDAQ: NFLX) recent fiscal 2022 third-quarter earnings beat Wall Street's expectations, triggering an almost 15% after-hours climb in its share price. The company reported 2.4 million new subscribers in the quarter, far exceeding analyst expectations of 1.1 million. And with that growth coming before the streamer has implemented specific strategies designed to boost subscriber numbers, there are several good reasons for investors to pay attention to Netflix right now.
Netflix has long had a lax approach to account sharing. The company's terms of service explicitly prohibit the sharing of log-ins between households, but it has never truly cracked down on the activity. The streamer changed its stance earlier this year after experiencing its first drop in subscribers for more than a decade.
Management has been testing two strategies across several Spanish-language countries, charging members more if their accounts are accessed at secondary addresses. In the company's third-quarter earnings call, it announced it would roll out a more-global response to the issue in early 2023, though it is yet to disclose just what form that will take.
Source Fool.com
