Netflix Inc (NASDAQ: NFLX) is close to surpassing its previous all-time high, nearing the $700 psychological level of resistance.
This threshold presents both a challenge and an opportunity for the streaming giant. Reaching such milestones often triggers investor actions that can influence the stock's direction.
In terms of subscriber growth, the company has shown impressive progress. As of the first quarter of 2024, the company has around 269.6 million paid subscribers globally, an increase of 9 million from the previous quarter.
This growth is mainly due to the successful introduction of an ad-supported tier and strict policies on account sharing, encouraging more users to open individual accounts.
The Europe, Middle East, and Africa (EMEA) region significantly contributes to this growth, with over 91 million subscribers.
On the financial front, Netflix's stock price shows a story of resilience and recovery. After hitting an all-time high of $700 in November 2021, the stock faced a significant downturn.
Investors deemed it as overbought, leading to a 76% drop over six months. However, unlike typical market behavior after such a steep fall, Netflix's stock bounced back.
By May 2022, after falling to a low of $162, it started climbing again, rising by over 300% and nearing its previous high but falling short of breaking through.
As 2024 progresses, the stock has already risen by 39%, driven by positive momentum. Investors are closely watching to see if Netflix can finally break past the $700 mark.
The outcome will likely affect the company's market valuation and could set the stage for its next phase of growth or adjustment.
With the company close to this crucial breakthrough, investors are eager to see if they can finally overcome the $700 level.
After the closing bell on Thursday, June 20, the stock closed at $679.03, trading down by 0.99%.