Is Netflix a Buy After Its Most Recent Price Hike?

Netflix raised U.S. subscriber prices by $1–$2 per month. While the hike should incrementally boost revenue, the company will need to sustain double-digit revenue growth to justify its current valuation, so the move is unlikely on its own to materially alter valuation risk.

Analysis

Netflix raised U.S. subscriber prices by $1–$2 per month. While the hike should incrementally boost revenue, the company will need to sustain double-digit revenue growth to justify its current valuation, so the move is unlikely on its own to materially alter valuation risk.