Netflix faced competition but strategic initiatives boosted subscribers and stock price, positive.

From Nasdaq: 2024-09-24 11:21:43

In the spring of 2022, Netflix faced intense competition from Disney+ and Hollywood studios in the streaming wars, leading to a stock plunge. However, strategic initiatives and a focus on cracking down on password sharing boosted Netflix’s growth, with total subscribers reaching 277.6 million and the stock rising 85.7% over the past year.

Despite challenges, Netflix remains the leader in subscribers and viewing time, with a market share of 8.4% in the US. The company is exploring new avenues for growth, including an advertising business and streaming live events like NFL games and WWE Raw. These moves could drive mid-teen revenue growth and wider operating margins.

To further capitalize on its leadership position, Netflix is investing in an in-house advertising platform and expanding into live sports programming. The shift towards live events enhances the company’s advertising business, offering higher value to advertisers. Despite competition, Netflix’s initiatives could drive significant revenue growth and market dominance.



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