Where Will Netflix's Stock Be In 3 Years?
Netflix (NASDAQ: NFLX), like many of its streaming rivals, has seen its share price tumble over the last year as global inflation rates have crunched household budgets. But despite the challenges, the company has implemented some interesting strategies that could bear fruit. With this in mind, let's explore what Netflix is doing right now, and how it might influence the streamer's stock over the coming years.
After reporting a dip in user numbers earlier this year, Netflix announced it would introduce a lower-cost ad-supported tier. The decision represented somewhat of an about-face for the streamer, which had long resisted investor calls to explore an ad-based model.
Netflix rolled out its $6.99 per month Netflix Basic with Ads offering on Nov. 3, 2022, and within weeks, founder and co-CEO Reed Hastings admitted the company had held out too long. "Hulu really proved that you could do ... [ad-supported streaming] at scale and offer consumers lower prices," said Hastings during the recent New York Times' DealBook Summit. "I wish we had flipped a few years earlier on it, but we'll catch up and in a couple of years we won't remember when we started it."
Source Fool.com
