Netflix stock forecast 2022 by DotBig
Although Netflix is one of the most popular streaming services all over the world, its stock price has been decreasing. Throughout the passing year, Netflix stock price has dropped by 70%. This is because of the last revenue reports that contain some details unsatisfying for investors. Today, as of 4:00 June 9, the asset is traded at $202.83. Will it recover in the future? Is this low price a good time to enter this venture and start investing in Netflix? Here is the forecast by DotBig experts.
Reasons for Netflix stock price movements
Even though the number of subscribers of the service has been decreasing, the business is doing well. Netflix still generates good revenues thanks to the implementation of more products and ad-supported versions at lower prices. Nonetheless, the price of Netflix stock is going down, and here is why:
- Serious competition. The ad-supported version is expected to be launched to the market at the end of 2022. Netflix is taking this step simply because it’s the way to boost revenue to $40 billion, despite the decreasing number of subscribers.
- Around 100 million clients use accounts without paying for them. How does this work? They simply use the service of shared accounts.
- The company produces less content. During the pandemic, more clients were willing to buy Netflix subscriptions. But today it’s streaming not enough content to add 36.6 million new users as it was in 2020. In the second quarter of 2022, according to the forecast, the number of users will decrease by 2 million subscribers. This makes investors hesitant about the future of the stock.
Despite the decreasing tendencies, Netflix good performance at the beginning of 2022. Plus, it’s expected to grow revenues with the help of new products and services. Although not everything seems very clear now, investors talk about Netflix stock and discuss the prospects of investing in it.
Will it rise in the future?
Netflix stock hasn’t been such cheap since before 2014. At this point, the current price might be considered a low entry-level for investors. That’s why DotBig experts forecast that this is a good time to invest in Netflix.
Despite the decreasing number of subscribers, Netflix is still a market leader with more than $5 billion of profits generated in 2021. This is a big deal for other competitors. If they want to reach the same digits, the only way is to increase the costs of services. This is likely to encourage their users to consider other platforms. Netflix, with its new policies of a cheap ad-supported version, will have the best chance to attract those leaving subscribers who are looking for low-cost services.
It seems clear that this asset is highly undervalued. That’s why the first half of 2022 is a great time to invest in it and take benefit from the lowest price rates that have been indicated over the last 8 years.
DotBig experts tend to think that it’s a good idea to invest in Netflix stock. Nonetheless, we cannot predict quote movements by relying only on the factors described above. We can only warn you that investing always involves risk. So we suggest you study the market, consider your budget, and make a well-thought-out decision on your future investments.