stockcam/iStock Unreleased via Getty Images
Netflix stock (NASDAQ:NFLX) was among top gainers Wednesday morning, up nearly 5% at midday after new research pointed to continuing subscriber growth and ad momentum even as it cracks down on password sharing.
The streaming pioneer likely added 2.6M subscribers on a gross basis in July, research firm Antenna said. While that marked a pullback from hefty June numbers, it indicated continuing momentum after the late-May introduction of Paid Account Sharing at the company — its attempt to monetize password sharing by turning it into “extra members” or move profiles to new accounts.
By comparison, gross adds were 2.6M in July and nearly 3.5M in June, but hadn’t risen above the 1.5M mark for any other month in the past year.
Antenna bases its data in online purchase receipts, banking data on credits and debits, bill scraping, and demographic and behavioral elements.
The firm also noted Netflix saw the highest percentage of new sign-ups going to the cheaper ad-supported service tier since last November’s introduction: about 23% of new subs, up from June’s 19%.
Elsewhere, Piper Sandler reiterated its Neutral stance on Netflix (NFLX), saying it was in “wait and see” mode in looking for sustainable revenue acceleration (particularly after the stock has run up about 80% in the past year).
“Specifically, we are digesting the impact of (1) the paid sharing roll-out, (2) the ad-tier roll-out, (3) the near-term vs. mid-term impacts of the strikes, and (4) the competitive landscape,” analyst Matt Farrell said.
He reiterated a $440 price target, vs. a midday share price of $432.46.
