Will US Viewers of Netflix (NFLX, $332.94) Pay More For More Content?
Netflix is set to hike prices in the U.S.
The streaming giant’s subscription plans will increase in price by $1-$2. While existing members will face the hike over the next few months, new subscribers will be charged with the higher prices immediately.
The price hike might be a result of Netflix’s content development ambitions. It possibly splurged $8 billion or more last year. The company projected a negative free cash flow of $3 billion in 2018, and has similar expectations for this year. Increase in subscription prices could potentially be a way to ease cash outflow pressures, especially as the company seems gung-ho on bulking up programming.
The company reported last quarter that it had more than 58 million subscribers in the US, and 137 million globally. Piper Jaffray's Michael Olson mentioned in a report last week that the streamer will add more subscribers in the U.S. than Wall Street analysts are expecting.
Netflix’s price hike and plans of beefing up content come at a time when competition looks to get hotter in the online streaming space. Disney’s streaming service Disney+ is getting launched this year. Comcast's NBCUniversal announced Monday about its plans to release a streaming platform in 2020. Also, there are speculations that Apple is apparently spending billions on making its own TV shows for distribution via the Apple TV, iPhone and iPad.
NFLX in upward trend: price rose above 50-day moving average on September 17, 2025
NFLX moved above its 50-day moving average on September 17, 2025 date and that indicates a change from a downward trend to an upward trend. In of 38 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where NFLX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on September 17, 2025. You may want to consider a long position or call options on NFLX as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 10-day moving average for NFLX crossed bullishly above the 50-day moving average on September 08, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 313 cases where NFLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for NFLX turned negative on September 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NFLX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NFLX broke above its upper Bollinger Band on September 04, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (20.921) is normal, around the industry mean (22.568). P/E Ratio (52.343) is within average values for comparable stocks, (80.384). Projected Growth (PEG Ratio) (1.362) is also within normal values, averaging (5.151). Dividend Yield (0.000) settles around the average of (0.039) among similar stocks. P/S Ratio (12.870) is also within normal values, averaging (33.361).
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General Information
a provider of online movie rental subscription services
Industry MoviesEntertainment
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