Reported 1 day ago
Netflix's stock has surged by 50% this year, but the company faces significant challenges in maintaining viewer engagement. Its recent report showed 94 billion viewing hours from January to June, reflecting only a 1% increase despite adding over 39 million subscribers, primarily from a password-sharing crackdown and a new ad-supported tier. Analysts express concern that stagnant viewership growth could impact Netflix's ability to raise prices and sustain its advertising revenue stream, as average daily viewing hours per subscriber decreased by 13%. With anticipated earnings growth, Netflix must demonstrate strong revenue numbers to justify its stock's high valuation.
Source: YAHOO