NFLX could respond adversely to the #CancelNetflix hashtag and the inflation reading this week
Netflix expanded its password-sharing crackdown last week.
NFLX stock closed down 4.2% on Friday.
Subscribers in Canada and Spain are complaining about new rules.
The market focused on Tuesday’s CPI release.
Netflix (NFLX) stock is doing better in Monday’s premarket after last week’s washout, but new storm clouds are emerging on social media where the #CancelNetflix hashtag is once again gaining ground due to last week’s crackdown on password sharing in certain international jurisdictions. Additionally, some traders are now expecting the January Consumer Price Index (CPI) number to come in hot on Tuesday after a revised December number made the rounds last Friday.
Netflix stock news: new password sharing crackdown leads some to cancel accounts
Netflix stock is up by 0.5% in Monday’s premarket despite the brouhaha that has formed around the #CancelNetflix hashtag. Last Wednesday Netflix finally did a partial rollout of its crackdown on password sharing. It is commonly known that friends and relatives share their Netflix passwords between households, a practice that has been around for years. Netflix even once supported the practice openly.
After stalling subscriber growth early in 2022, however, Netflix announced it would be testing a new rule in Latin America that forbid password sharing between separate households. Then last Wednesday Netflix expanded the new rule to New Zealand, Canada, Portugal and Spain. Rather than sharing passwords with another household, the owner of the account must pay a separate fee to allow password sharing.
“Members on our Standard or Premium plan in many countries (including Canada, New Zealand, Portugal and Spain) can add an extra member sub account for up to two people they don’t live with — each with a profile, personalized recommendations, login and password — for an extra CAD$7.99 a month per person in Canada, NZD$7.99 in New Zealand, Euro 3.99 in Portugal, and Euro 5.99 in Spain,” Netflix said in a statement on its website.
This has led many former subscribers to end their subscriptions with the streaming giant and post their cancellations on Twitter or Facebook alongside the hashtag #CancelNetflix. Of course, we cannot know how much this will affect subscriptions levels until the next earnings release (late April) or if the new sharing fee will make up for revenue lost from the cancellations.
NETFLIX TECHNICAL ANALYSIS DAILY CHART:
In daily chart Netflix currently started trading in up channel.
Netflix is currently trading above 5&50 SMA.
RSI is in buying zone which shows bullishness. And stochastic is suggesting down trend.
Netflix immediate support level is at 345.25 & resistance level is at 354.06
HOW TO TRADE IN THIS WEEK
Netflix is trading in up channel, but it is at an important support level if it breaks the support level, we can see a further fall to down side