Netflix stock just hit an all-time high.
On Tuesday, the streaming giant’s shares surpassed their 2021 intraday high of $700,989 to trade at around $710. The price moves come as investors applaud the company’s foray into live sports as its ad-supported offering continues to gain momentum. In a blog post, the company announced that it has secured “an increase in upfront advertising sales revenue of over 150% in 2023, which is in line with our expectations.”
Upcoming films and series such as “Happy Gilmore 2” and “Squid Game 2,” as well as the recent acquisition of live sports content such as the NFL Christmas Day Games and WWE Raw, which will launch in January 2024, have fueled the success of these advertising partnerships, Netflix said.
“Our advertisers continue to be thrilled by our highly engaged audiences and the diversity and quality of our programming. For Season 3 of ‘Bridgerton’ – our sixth most popular English-language television series of all time – we secured several international title sponsors, including L’Oreal, Pure Leaf, Amazon Audible, Puig, Booking.com, Stella Artois and Hilton,” said Amy Reinhard, President of Advertising at Netflix.
As the use of advertising continues to gain momentum, the company is also well positioned for price increases.
Netflix last raised the price of its popular Standard package in January 2022, from $13.99 to $15.49. Netflix also raised the price of its Premium package by $2, to $19.99 a month, before raising the price of that package again to $22.99 in October.
The company has not yet increased the price of its ad-supported offering, which was introduced less than two years ago. At $6.99 a month, it remains one of the cheapest ad-supported plans of any major streaming service.
Netflix has previously stated that its goal is to make advertising a “more substantial revenue stream that contributes to sustainable, healthy revenue growth in 2025 and beyond.” As a result, the cheapest ad-free streaming package will be phased out, leaving the $15.49 Standard package as the cheapest offering for ad-free experiences.
Analysts have said there are likely to be price increases on the standard tariff later this year.
Netflix’s record high on Tuesday followed a sell-off in mid-July that rocked shares after the company announced revenue guidance that missed Wall Street’s expectations for the current quarter. Shares were also pressured by a recent sell-off in Big Tech that has since recovered.
