When Netflix announced its earnings in April, it sent shares plummeting lower. Netflix announced a drop in subscribers for the first time in a decade. Furthermore, they also reported that they were expecting a further fall of 2 million subscribers for the coming quarter. However, they also announced a plan for a lower price, but ad-supported subscription option!

Last week the New York Times cited a note saying that the plan could be in operation by year end.

Will Netflix share prices be able to gain on hopes that this plan will reverse the company’s falling subscriber numbers?

Over the last 10 years Netflix has gained an average of 14.29% between May 17 and July 16. The largest gain was in 2015 with a 31.20% profit. The company has not lost value during this period once! Time for more gains to come?

Major Trade Risks: If consumers continue to feel the pinch of higher prices, then optional consumable items, like paid for tv, are likely to see lower levels of demand. The at home paid for tv service is also now competitive with both Amazon Prime and Disney+ competing for subscribers.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.