Why a Recession Could Derail Netflix's Growth Plans
Netflix (NASDAQ: NFLX) has had a bumpy 2022. The company reported a dip in subscriber numbers for the fiscal first quarter -- its first customer decline in over a decade -- and lost almost 1 million more in the second quarter. Netflix's stock price has also dropped significantly, falling from a high of approximately $690 per share in November 2021 to around $225 at the end of July.
To deal with its challenges, Netflix has outlined two key plans to reignite growth. The first is a scheme to charge those who share their account logins with others a fee for the privilege of doing so. The second is to introduce an ad-supported plan that will be cheaper than existing tiers. However, with many U.S. economists predicting a recession before the year is out, Netflix's strategy may soon run into trouble.
Source Fool.com
