Netflix’s Latest Ad-Supported Plans and Gaming Push Streamer’s Stock Prices to a Raise in the Market

Published 03/24/2023, 7:30 PM EDT

2022 was a terrible year for Netflix. The biggest streaming giant experienced a setback that cost it thousands of subscribers across the globe. The increasing prices and the streamer canceling fan-favorite shows, despite massive outrage on Twitter, caused the customers to grow increasingly dissatisfied. It further suffered after pulling back its services from Russia in the wake of the Russia-Ukraine war. In a bid to change the tides in its favor, the company broke one of its policies and introduced ads. And now, after a year, it seems there is light at the end of the tunnel. 

The ad-supported model and the continuous investment in games have finally paid off. The company’s stocks are rising. Netflix’s stocks increased by 9% on March 23 and closed at 320.37 according to Investor. Last month, the company stocks had fallen beyond the key support level but now it’s moving towards the 50-day moving line. It is currently ranked one out of 21 stocks in the IBD’s Leisure-Movies and Related Industry list. The stocks have scored an IBD composite rating of 84. 

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The digital platform launched its lower-cost ad tier model just two months ago. And it has already garnered 1 million monthly active users, according to Bloomberg. Interestingly, the low-cost pack has attracted new customers. The streamer even witnessed lapsed customers renewing their accounts. 

As for its nascent mobile gaming stage, the streamer plans to introduce 40 more new games this year. So subscribers will have 95 games in total at the end of the year. In fact, Dough Anmouth, a JP Morgan stock analyst, has given Netflix’s shares a buy rating, keeping the price target at 390. Apart from this, there are still a lot more changes that the streamer is hoping to bring. 

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DIVE DEEPER

YOU’RE DEAD TO ME! Jimmy Fallon Uses Netflix’s Own Shows to Conjure Up a Powerful Message for the Streaming Giant Amidst Password-Sharing Backlash

about 1 year ago

The password-sharing crackdown may affect the stocks of Netflix

The streamer has not yet rolled out its password-sharing crackdown globally. Only in selected countries like Canada, New Zealand, Portugal, and Spain. But it is soon to restrict users from sharing the password to their Netflix account. Subscribers are already revolting against this decision and there is a chance that Netflix shares might get hit again. 

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Additionally, Netflix is also planning to establish an in-house ad tech operations team. So this might mean the end of the deal between Netflix and Microsoft. 

Do you think Netflix’s stocks will continue to rise? Share your views with us in the comments below. 

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Srabani Biswas

1116 articles

Srabani Biswas is a writer at Netflix Junkie. She is a sociology graduate from Lady Brabourne College. Previously, she has contributed to Sports India Show and The Sports Room as a sports writer, and interned at Ripples Learning.

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