Will Subscribers Balk at Netflix's Latest Price Increase?
Video-streaming pioneer Netflix, Inc. (NASDAQ: NFLX) has been one of the hottest stocks on the market, notching a 200% gain over the past three years. The number of subscribers has more than doubled, from 50 million in late 2014 to 104 million as of its second-quarter financial release.
It's no coincidence that this phenomenal growth followed the company's foray into original content and about the time it decided to own, rather than merely produce, its best shows. That has led to massive investments in its original programming, amounting to more than $6 billion for 2017. To help finance a steady stream of new shows, it will be raising prices on its mid- and top-tier plans in the U.S., beginning this month.
Subscribers will have to pay $1 more to see Season 2 of Stranger Things. Image source: Netflix.
Source: Fool.com
Netflix Inc. Stock
With 81 Buy predictions and 4 Sell predictions Netflix Inc. is one of the favorites of our community.
However, we have a potential of -0.4% for Netflix Inc. as the target price of 653 € is below the current price of 655.6 €.
