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Facts About Netflix That Could Impact Its Stock Price

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Netflix started 2022 with a share price near $600. By the end of April, the price had plummeted to $200. With a significant stock slide such as this, it can be helpful for investors to reevaluate facts about the company to determine if it’s still a good investment.

Subscriber Growth Is Missing Targets

For several years, Netflix has increased its subscriber growth substantially each year by hitting its targets. They accomplish this goal by adding a strong slate of content to the platform, enticing more individuals to subscribe.

Unfortunately, along with significant competition from new services like DirecTV Stream, Paramount+, and others, the new content Netflix has added recently has not resulted in an influx of new subscribers. 

In April of 2021, Netflix reported 207.64 million subscribers globally, resulting in 13.6 percent year-over-year growth. However, this increase fell short of their goal by 2 million subscribers as they only added 4 million new subscribers.

In the prior year’s first quarter, the company gained close to 16 million new subscribers. While a significant reason for this growth was due to individuals watching more streaming content due to the pandemic, the inability to reach their 6 million subscriber goal was a warning, especially given the “captive” audience. 

Netflix’s bottom line was affected negatively without increased subscriber growth, leading to a lower stock price. This price action will likely continue if they continue to add content and fail to see it help subscriber growth.

Losing Revenue Due To Password Sharing

Research from November 2020 showed that over 50 percent of Netflix users share their passwords with other individuals. This figure is a 19.5 percent increase over another research study from June 2020. Any type of password sharing results in lost revenue for the company. Netflix is aware of users sharing accounts and has started experimenting with pop-up warnings.

In addition, Netflix announced that it intended to charge primary account holders with an extra fee for every “sub-account” they have. Sub-accounts will be created every time a password is shared with one or two people outside the home. 

Unfortunately, Netflix isn’t sure how much revenue it can generate from implementing its sub-account pricing globally, likely taking about a year to implement.

Barrier to Adoption

A survey of Americans who use someone else’s password indicated that about 80 percent of them said they would not open a new account if they could not share a password. 

According to COO Greg Peters, getting the balance right with this solution will likely take some tweaking as a company doesn’t want to shut down sharing completely. They just want to get revenue associated with that viewing.

Signing an Exclusive Deal With Sony

Sony Pictures signed a deal with Netflix allowing them to become the exclusive streamer of their theatrical releases, starting in 2022. Popular IPs like Morbius, Bullet Train, Uncharted and future sequels to Jumanji, Venom and Spider-Man: Into the Spider-Verse, will be included in the deal. Starz had this same deal with Sony previously but lost out to Netflix.

In addition, films from Columbia Pictures, Sony Pictures Classics, TriStar Pictures and Screen Gems Studios will head to Netflix. The new deal also gives Netflix the first look at Sony’s original movies.

These content development deals are part of Netflix’s extensive global programming strategy for the next five years. Adding more original content may help Netflix gain more market share, which could cause an uptick in the stock price.

A Share Price Discount Was Due After Increasing for 20 Years

At some point, it was inevitable for Netflix’s stock price to pull back as it has been running hot over the last 20 years. It soared from one dollar a share in 2002 to the $600 range in 2021, which is close to a 60,000 percent increase. The company’s stock chart has pulled back to 2017 prices, giving investors a chance to dollar cost average in at a lower price.

Stock market news June 6, 2022

Stock market today

How did the stock market close today? Tech stocks outperforemed.

S&P 500: 4,121.43,+12.89(+0.31%)
Dow 30: 32,915.78,+16.08(+0.05%)
Nasdaq: 12,061.37,+48.64(+0.40%)
Russell 2000: 1,889.89,+6.83(+0.36%)

Stock market news today June 6, 2022

“U.S. stocks were slightly higher Monday after a morning rally lost ground earlier in the session.

The S&P 500 was up 0.3% after rising more than 1% at the start of trading, and the Dow Jones Industrial Average closed just above breakeven after paring a 300-point gain. The tech-heavy Nasdaq rose 0.4%. The swing lower in equities from session highs came as the 10-year U.S. Treasury benchmark topped 3%.

All three major indexes struggled to recover from a sell-off Friday that rounded out another down week on Wall Street. The declines followed a stronger-than-expected May jobs report showed hiring kept at a slower but still-robust tempo last month – a sign of continued strength in the labor market expected to keep policymakers on pace with interest rate-hiking plans.”

Stock market data: Yahoo Finance

Stocks gainers May 27, 2022

Top stock gainers May 27, 2022

These stocks were among the top gainers in the Us stock market on May 27, 2022.

Farfetch Limited (FTCH): 9.73+2.05 (+26.69%)

Super Group (SGHC) Limited (SGHC): 7.22+1.19 (+19.73%)

AMC Entertainment Holdings, Inc. (AMC): 14.43+2.20 (+17.99%)

Stock market data: Yahoo Finance

Novavax, Inc. (NVAX): 55.29+8.22 (+17.46%)

Stock market data: Yahoo Finance

Business and finance deals May 26, 2022

Looking for top business and finance deals? Here are today’s top business and finance deals.

Check the following top deal.

Visit us daily for stock market news, stocks to monitor, investment, business, and finance news.

Stock market news May 19, 2022

Stock market today

Small-cap stocks outperformed today.

S&P 500: 3,900.79,-22.89(-0.58%)
Dow 30: 31,253.13,-236.94(-0.75%)
Nasdaq: 11,388.50,-29.66(-0.26%)
Russell 2000: 1,776.22,+1.38(+0.08%)

Stock market news

“U.S. stocks fell deeper into the red Thursday after markets failed to claw back from their worst day since June 2020. The declines extend a recent sell-off in equities ignited by worries the Federal Reserve’s interest rate hikes to rein in persistent levels of inflation may spur an economic slowdown.

The S&P 500 slid 0.6% to edge closer toward bear market territory, defined as a close of 20% from its recent high. After logging its biggest drop in two years in the last session, the index is down roughly 19% from its all-time high Jan. 3 and must close below 3837.24 to officially enter a bear market. The Dow shed 230 points following a nearly 1,200-point drop in the last session to close at its lowest level since March 2021. The Nasdaq Composite fell 0.3% after swinging between gains and losses in intraday trading.

“Investors should become accustomed to significant downside and upside moves in stocks, which is common during times of tremendous uncertainty,” Claro Advisors managing principal and founder Ryan Belanger said in a note. “We expect the stock market to trade near or in bear market territory for the coming months, creating a frustrating range-bound market that will test the will of many investors.”

The losses follow a bevy of weaker-than-expected quarterly results from big-box U.S. retailers that stoked investor fear about the toll inflationary pressures may take on corporate profits and consumer spending.

Target (TGT) lost a quarter of its market value on Wednesday after the company reported an operating margin far below analyst estimates and cut its full-year outlook, citing higher transportation costs due to rising fuel prices.

“Today’s broad-based market sell-off concerns the ability of companies to pass along higher costs, something that was questioned but which found somewhat of an answer with the retailer’s earnings reports,” LPL Financial Chief Equity Strategist Quincy Krosby said in an email on Wednesday. “To be sure, consumers continue to spend, but many of the top retailers are unable to pass along the higher labor costs and higher prices wrought by a still constrained supply chain.”

Stock market data: Yahoo Finance

Stock market news May 16, 2022

Stock market news for May 16, 2022

How did the US stock market close today? Tech stocks outperformed, and Nasdaq lost 142 points.

S&P 500: 4,008.01,-15.88(-0.39%)
Dow 30: 32,223.42,+26.76(+0.08%)
Nasdaq: 11,662.79,-142.21(-1.20%)
Russell 2000: 1,783.43,-9.24(-0.52%)

Stock market today

“U.S. stocks ended mixed on Monday, with equities struggling for direction as concerns over the growth outlook persisted amid elevated inflation.

The S&P 500 ended a choppy session lower, dropping 0.4% to close at 4,008.01.The Nasdaq dropped by 1.2% to end at 11,662.79, as mega-cap technology companies including Apple (AAPL) fell and dragged the index lower. The Dow Jones Industrial Average closed slightly higher to reach 32,223.42.

U.S. crude oil prices (CL=F) erased earlier losses and rose even after new economic data from China came in weaker-than-expected, as the latest wave of virus-related restrictions in the country curbed mobility. China’s retail sales dropped by 11.1% in April over last year, marking the worst decline since March 2020, while industrial production unexpectedly dropped by 2.9% compared to the same month last year.

The move lower in risk assets on Monday extended a recent stretch of volatility across markets. Stocks closed out last week with a sixth consecutive weekly loss, bringing the S&P 500 a total of 16.1% below its record high from Jan. 3. This has come, in turn, as investors weighed the risks of a deeper economic downturn as the Federal Reserve looks to curb inflation running near its hottest level in four decades, geopolitical turmoil continues in Ukraine, and China grapples with its largest COVID outbreak since 2020.

And amid these concerns, Wall Street analysts have struck a more cautious tone on stocks. Goldman Sachs slashed its year-end price target on the S&P 500 to 4,300 from 4,700 in a new note. The lowered target reflects “higher interest rates and slower economic growth than we previously assumed,” according to David Kostin, Goldman Sachs chief U.S. equity strategist. And in a recession scenario, Kostin added, the S&P 500 would likely fall even further to 3,600.

Other strategists also underscored the plethora of current risks to equities, and cautioned against reading too deeply into one-day bounces.”

Stock market source: Yahoo Finance

Stock market wekly performance for May 14,2022

Stock market news

For the week ending on May 12, 2022 the US stock market closed as follows:

S&P 500: 4,023.89,+93.81(+2.39%)
Dow 30: 32,196.66,+466.36(+1.47%)
Nasdaq: 11,805.00,+434.04(+3.82%)
Russell 2000: 1,792.67,+53.28(+3.06%)

US stock market weeky performance

Dow Jones: -2.14%

S&P 500: -2.41%

Nasdaq: -2.80%

Stock market data: Marketwatch

Stock market news May 9, 2022

Stock market today

Another strong selloff for the US stock market today. How did the stock market close today? Small-cap stocks underperformed.

S&P 500: 3,991.24,-132.10(-3.20%)
Dow 30: 32,245.70,-653.67(-1.99%)
Nasdaq: 11,623.25,-521.41(-4.29%)
Russell 2000: 1,756.39,-83.18(-4.52%)

Stock market news

“U.S. stocks slid Monday to extend last week’s losses, as investors looked ahead to more data this week on inflation and earnings to gauge the strength of the economy and corporate profits as the Federal Reserve continues to tighten monetary policy.

The S&P 500 dropped more than 3% and ended at its lowest level since March 2021, closing below 4,000. The Nasdaq Composite plunged by 4.3% as technology stocks came under renewed pressure. And the Dow shed more than 650 points, or 2%, to settle at 32,245.70.

A combination of concerns on the geopolitical, COVID-19 and inflationary fronts have weighed heavily on risk assets in recent weeks, triggering volatility across stocks, cryptocurrencies and commodities. The CBOE Volatility Index, or VIX, jumped above 34, or well above its longer-run average of around 20.

“The path of least resistance remains lower for global equity markets to start the week. The overwhelming focus continues to be on inflation, rising interest rates, and the war in Ukraine,” Brian Price, head of investment management at Commonwealth Financial Network, wrote in an email Monday. “The combining factors of tight supply chains resulting from China’s zero COVID policy, and rising oil and food prices due to the war in Ukraine, are causing inflationary fears that are triggering a move out of risk assets. The market is void of major positive catalysts right now, so it is not surprising that we’re starting the week off under pressure.”

Investors this week are awaiting more data on the state of inflation in the U.S., which will help show how much more aggressive the Fed many need to be in order to rein in elevated price pressures. Wednesday’s Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI) for April are expected to show a deceleration in price increases, suggesting March may have been the peak in the rate of price increases across the economy.

This data will come in the wake of the Fed’s latest monetary policy decision and press conference from Federal Reserve Chair Jerome Powell, which was met with heightened volatility among risk assets. Stocks spiked and then slid, and Treasury yields marched higher following the monetary policy decision, as investors appraised whether the tools at the central bank’s disposal will be sufficient to keep inflation from becoming further entrenched while preserving economic growth.”

Stock market source: Yahoo Finance

Stock market news May 5, 2022

Stock market today

A steep selloff today sent the US stock market lower today. Dow Jones lost 1063 points, and Nasdaq fell 647 points. Tech stocks underperformed. How did the stock market close today?

S&P 500: 4,146.87,-153.30(-3.56%)
Dow 30: 32,997.97,-1,063.09(-3.12%)
Nasdaq: 12,317.69,-647.16(-4.99%)
Russell 2000: 1,871.15,-78.77(-4.04%)

Stock market data: Yahoo Finance

Stock market news May 3, 2022

Stock market today

Small-cap stocks outperformed today.

S&P 500: 4,175.48,+20.10(+0.48%)
Dow 30: 33,128.79,+67.29(+0.20%)
Nasdaq: 12,563.76,+27.74(+0.22%)
Russell 2000: 1,900.77,+17.86(+0.95%)

Stock market news

U.S. stocks traded mixed Tuesday in another choppy session in markets, as investors appraised the next moves by the Federal Reserve and a fresh batch of quarterly earnings results.

The S&P 500, Dow and Nasdaq struggled for direction intraday. On Monday, technology stocks had outperformed, leading the S&P 500 higher by 0.6%, and the Nasdaq up by 1.6%. And these moves in tech shares came even as the benchmark 10-year Treasury yield topped 3%, or its highest level since December 2018. In recent months, a rise in yields has coincided with a drop in tech shares, which are considered more vulnerable to higher rates that would weigh on growth stocks’ valuations.

The market moves at the start of this week extended the streak of volatile trading investors have endured over the past several weeks. The S&P 500 posted an 8.8% decline in April for its worst month since March 2020.

“Volatility skews in both directions. In this period when we expect heightened volatility because of all of the confluence of factors that we see from geopolitics to earnings to the Fed to inflation, you’re going to have big swings like this,” Ross Mayfield, Baird investment strategy analyst, told Yahoo Finance Live. “I think at a certain point, buyers do see some value in there. If you’re of the opinion that we’re not going to enter a recession … I think you start to see some value investors start to take some bites.”

Still, given the variety of concerns still present for the market outlook, many strategists have struck a more cautious tone on U.S. stocks for the near-term. In a note published Friday, Bank of America strategists led by Savita Subramanian slashed their price target on the S&P 500 by 100 points to 4,500.

“This year’s market does not appear to be dominated by one factor, be it fundamentals or positioning, cost of capital or corporate outlooks, but has been reacting to all of the above in big swings,” the analysts wrote.”

Stock market data: Yahoo Finance