www.varchev.com

Netflix is ​​increasing its fees – an opportunity to add to the long positions

New price increases for Netflix (NFLX) subscribers could boost sales, analysts say.

The streaming company announced late Thursday that it will increase its standard membership fee by $ 1 to $ 14. Premium will increase by $ 2 to $ 18. The changes will be introduced in the next two months.

Jefferies analyst Alex Giaimo estimates that price increases could boost Netflix sales by $ 500 million to $ 1 billion in 2021. Given Netflix’s strong content, Giaimo doesn’t believe the company is at risk of losing significantly number of subscribers due to price increases.

Netflix last raised prices in January 2019, but managers have hinted strongly in recent calls for profits that an increase is looming. So this week’s news is hardly a surprise to the street. In January 2019, Netflix’s service, which offers two streaming devices, rose to $ 13 from $ 11. A cheap plan of $ 8 a month reached $ 9, and a high-end version went to $ 16 from $ 14.

Shares of Netflix have risen 55% so far, surpassing the Nasdaq Composite’s earnings by 25%.

0


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance