The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX
ATFX-search-icon
Client Portal
Start trading
rch

Netflix Shares Look for a Breakout on Subscription Crackdown

The price of Netflix (NFLX) shares has rallied from the lows around mid-March and is looking to press higher. The company is seeking to boost revenues by cracking down on subscription sharing of its streaming service.

NFLX – Daily Chart

NFLX – Daily Chart

NFLX stock currently trades at $342.35, and the resistance for a move higher is close. Netflix can push to the $380 high or support costs $320 for a correction. 

The media streaming company is looking to boost its revenue by cracking down on the ability of users to share subscriptions across different locations. That strategy and the new lower-cost subscription tier service containing advertising could boost user growth and maintain momentum in Netflix’s stock price.

Shares of Netflix are up more than double from the five-year low seen last year after the company posted its first subscriber loss for a quarter. However, the stock price remains about 50% below an all-time high from late 2021. Third Bridge has called it a “huge opportunity” for the company as “there are millions of people on shared accounts, and if you get a few bucks per month out of even a small percentage of them, that creates a huge recurring revenue base that can supplement current growth.”

Netflix Stock Prediction

Netflix estimated that more than 100 million people use its service without paying. Analysts expect an additional 2.3 million subscribers when it reports Q1 earnings results on April 18. That would bring the total paid membership number to 233 million. Even if Netflix can monetize 10-20% of its non-paying users, it could significantly boost its bottom line. 

Wells Fargo analysts see the crackdown by Netflix on shared passwords as one of the critical drivers for earnings optimism. The bank’s researchers said the strategy “appears to be creating significant upside to estimates” as “paid sharing is arguably the bigger near-term earnings opportunity.” Meanwhile, Bank of America analysts say they expect subscriber results for the US and Canada to be “significantly stronger” than current Wall Street estimates.

Last Updated: 07/04/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Recent news
German Stocks Warn of a Potential High as Economy Falters

A collection of headwinds could hurt German stocks. GER30 – Weekly Chart The German stock ...

Recent news
Bitcoin Hits Resistance as Debt Ceiling Deal Nears

Bitcoin has hit another resistance level as the US nears a debt ceiling deal. BTCUSD – Dai...

Recent news
US Stocks Face Important Week with Debt Deal in the Balance

The US30 has dropped through support after Germany's disappointing GDP growth print. US30 ...

Recent news
EURGBP in Focus with European Economic Data

The price of EURGBP could see volatility as the pair has European economic data released. ...

Recent news
US Dollar Index Softens Ahead Of Key Data Release This Week

On Tuesday, the US dollar paused at 104.51, soft against a basket of major currencies but ...