Netflix's Price Hikes Might Force Customers To Re-Evaluate

Summary

• Netflix is starting to clamp down on cross-household password sharing, making it the first streaming company to do so.
• We expect customers will re-evaluate the value of their subscriptions, especially as prices rise, something they're doing already.
• The company has destroyed shareholder value with a more than $200 billion market cap drop over the past year.
• The company's theoretical peak earnings would be a P/E of 10, assuming no operating expenses meaning the company still has more room to fall.
• Content expenses are getting expensive and we expect that to continue. Competitors have other businesses to subsidize earnings.
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Wachiwit

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.