Netflix has managed to raise its stock price to its highest level in 16 months. The company managed to generate profits through its new strategy of sharing paid passwords in additional markets.
At the beginning of last month, Netflix’s stock rose to its highest level in 16 months after JP Morgan analysts raised its target price by 24% to $445.27, the highest closing price since February 2022, amid optimism about the company’s profit opportunities.
What are the reasons?
There are several reasons for the rise in Netflix’s stock, including:
Paid password-sharing strategy. Netflix users can share their accounts with others for an additional fee. It is expected that this feature will help attract more subscribers and generate profits for the company.
Netflix has improved its communication with subscribers and reduced concerns about accessing the service while travelling, which increases users’ confidence in the company and makes it a good option for customers.
Netflix has been able to increase its number of subscribers in the first quarter of 2021, with a 14% increase in the number of Netflix subscribers compared to the previous year. This means that the company is achieving continuous growth in its number of subscribers.
Netflix invests in producing exclusive content, which attracts more subscribers to the service and increases the company’s popularity.
Investors expect Netflix to achieve growth in profits and revenues in the near future, which increases demand for buying the stock and drives its price up.
Is Netflix a good investment now?
There are several reasons why some investors may consider Netflix to be a good investment:
Netflix has been experiencing steady growth in its subscriber base and revenue over the years. The company has been expanding into new markets, producing original content, and investing in technology and innovation, which may help it continue to grow and increase its market share.
Netflix has strong brand recognition globally, which has helped it attract and retain customers. The company is associated with high-quality content and a user-friendly interface, which appeals to a wide range of audiences.
Netflix is a leader in the streaming industry, with a significant market share and a proven track record of success. The company has been able to adapt to changing market trends and customer demands, which has helped it maintain its position as a leader in the industry.
Netflix has been diversifying its content library to cater to a wider range of audiences. The company offers a variety of genres, including drama, comedy, action, and documentaries, which helps it attract a diverse customer base.
Netflix has formed partnerships and collaborations with various companies and studios, which has helped it expand its content library and produce more original content. For example, the company has partnered with Marvel, Disney, and DreamWorks to produce original shows and movies.
After all, there are many potential benefits to investing in Netflix while it is experiencing continuous growth. Open a real account now to trade Netflix stocks on MT5.