Netflix’s Stock Soars–Increase in Subscribers
Netflix added almost a million subscribers this quarter (990k to be exact), while increasing their fees by almost 60%. Those two factors combined to send Netflix up over 20% on the market today. This of course coming a day after I post that the stock burned my personal portfolio when I sold out a while back. Hindsight is 20/20.
Can Netflix really return to it’s glory days? Well that comes down to their international expansion and competition. The biggest threat to Netflix – Amazon.
Amazon has yet to become serious about taking a stance against Netflix, but it is very possible in the near future. I for one welcome Amazon’s competition. My personally feeling about all of this is – Red box can rent you a movie for around $1, why can’t I pay $2 to stream it? It’s surely worth $1 extra to save the gas and hassle and it must be worth them to sell the rights for more than they are getting with Redbox.
Speaking of Redbox – If they are located near you (when I say near, I mean about a mile or less), you can get a lot of movies for the price of a Netflix subscription.
Regardless, I applaud Netflix in seeing the future, which is streaming content. I’m not saying that they are going to win the streaming battle, but Reed Hastings and crew (along with most people with IQ above 110) know that their DVD service will not make a long-term thriving company. In the end I think the content will decide who wins, and competition between Amazon and Netflix might result in some pretty nice deals for consumers. More to come.
Filed under: Investing
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