Insights

Here’s why Netflix stock climbed higher today

Investors jumped on the news that Netflix could introduce an ad-supported tier sooner than expected.
The post Here’s why Netflix stock climbed higher today appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Shares of Netflix (NASDAQ: NFLX) were rising this afternoon after The New York Times reported that the company could launch an ad-supported video streaming tier earlier than Netflix’s management previously said.  

The video streaming stock was up by more than 5% today and had gained 2.8% at the end of the trading day. 

So what

According to The New York Times, Netflix told employees that it could launch its ad-supported, lower-priced tier in the last calendar quarter of this year. If true, that would be significantly faster than management’s earlier timeline of one to two years. 

Additionally, Netflix said in the note that it’s going to start cracking down on password sharing by the end of this year as well, by charging a fee to users who do so. 

The two moves come after Netflix lost 200,000 subscribers in its first quarter, which was the company’s first subscriber loss in 10 years. 

In the past, Netflix had always been against a lower-priced tier supported by advertising. But Netflix’s co-founder and co-CEO Reed Hastings said on the first-quarter call that while he’s always been a big fan of the subscription video streaming model, Netflix is considering an ad-supported tier because he’s a “bigger fan of consumer choice.” 

Now what 

As of this writing, Netflix hasn’t officially announced an ad-supported tier, but investors are nonetheless happy to see that the company appears to be moving quickly in this direction. 

With subscriber growth slowing and Netflix’s share price down 64% over the past 12 months, investors are looking for any changes at the company that could help boost revenue and get more people signed onto the company’s video streaming service. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s why Netflix stock climbed higher today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Netflix right now?

Before you consider Netflix , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Netflix wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Should investors start to question Netflix’s pricing power? Have ASX tech shares finally reached the bottom? Why Netflix stock was falling again today 3 reasons to buy Netflix, and 1 reason to sell Better buy: Netflix vs. Twitter

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!