Netflix Stock Prices: Investors Eye Quarterly Report Amid Price Hike

The anticipation is palpable as Netflix prepares to report its current quarter earnings, especially considering the recent price hike that has taken effect. With investors on high alert, the streaming giant's quarterly performance will be scrutinized for any signs of growth and profitability.

According to analysts, Netflix is expected to spend a significant amount on content globally, with estimates suggesting $17 billion in expenditures. This marks a substantial increase from the $12 billion spent in 2020, which was a down year due to the COVID-19 pandemic.

However, concerns have been raised about the company's spending habits, particularly in two of its biggest markets – the US and Canada. Mark Zgutowicz, senior analyst at Rosenblatt Securities, notes that Netflix has been pouring money into content worldwide, but this investment hasn't been supported by subscriber growth in these key regions.

Despite these concerns, Wall Street was pleased with Netflix's latest news, sending its stock up around 2% on Friday. The company raised prices for its standard plan in the US and Canada, increasing the monthly subscription fee by $1.50 to $15.49 and $16.49 Canadian, respectively.

The premium plan also saw an increase of $2 per month, with prices now standing at $19.99 in the US and $20.99 Canadian. Meanwhile, the basic plan will cost $9.99 following a $1 price hike.

Raising prices is one lever Netflix can use to boost its bottom line, although some analysts wonder how long this strategy will remain effective. As the streaming giant continues to navigate the competitive landscape, investors will be keenly watching its quarterly report for any signs of growth and profitability.

Netflix stock prices