Are they really hiking my subscription up 60%?????? This is crazy stupid and infuriating. I've been a happy Netflix subscriber for 4 years now but this is BS. I'm canceling my membership just before the price increase in September, and shorting the stock immediately. What a slap in the face...
The Netflix fee increase is going viral. There is already a huge backlash building. Your dreaming about 25%. BOD needs to step in and end this increase. Competitors are foaming at the mouth and ready to devour new customers at the old netflix prices. Wake up BOD.
It is a necessary and correct move by nflx. It is going broke otherwise. They have to make this gutsy move to bet the extra revenue from those who stay more than compensate for the loss of revenue from cancellations.
lets think about this...lets assume they had 100 people at the 9.99 (1 dvd and streaming) which is $999 a month
lets assume that 25% of the people like yourself can't afford $5 more a month so now they have 75 people at 15.98 which is 1198.50
thats 20% revenue growth with 25% fallout.....genious
Since when has this stock been measured on revenue. It's subscription growth only. 1999 all over again. Show a drop in sub growth and then price to earnings vs growth and margin growth will be the metics. That puts the stock back to $100.
Your premise is good for an undervalued stock.
You know what? Your logic is correct but incomplete.
The only reason NFLX has an astronomical PE of 83 is that it's growing.
With such a stupid move, their growth will slow down probably go in the negative theritory in a year. Not so genius now...huh!?
This stock will get a massive hair cut real soon.
Just watch and learn.