Netflix Slashes Prices. Genius Move or Desperation?
The past couple of years have been rife with uncertainty for Netflix (NASDAQ: NFLX) investors. After climbing to an all-time high during the pandemic, the stock has been decimated, plunging as much as 75%. However, after shedding nearly 1.2 million subscribers during the first half of 2022, in recent quarters, Netflix appeared to be back on track. After back-to-back subscriber increases, the company debuted a lower-priced, ad-supported tier and announced plans to rein in account sharing by charging for viewers outside the member's household, designed to underpin future growth.
Netflix investors were justifiably taken aback this week when reports emerged that the company was cutting its subscription price in a vast number of international locales. The move left market watchers scratching their heads, wondering exactly what Netflix hoped to gain by cutting prices, just as the company appeared to be getting its groove back.
Image source: Getty Images.
Source Fool.com
