US stocks fall after 8-day winning streak

Netflix stock just hit an all-time high.

On Tuesday, shares of the streaming giant surged past their 2021 intraday high of $700,989 to trade around $710. The moves come as investors cheer the company’s foray into live sports as its ad-supported tier continues to gain momentum, with the company announcing plans to expand its streaming services. Detector In a blog post, it announced that it had secured “a 150% increase in ad sales commitments made through 2023, in line with our expectations.”

Netflix said upcoming movies and series like “Happy Gilmore 2” and “Squid Game 2,” along with recent acquisitions of live sports content like NFL Christmas Day games and WWE Raw, which will launch in January 2024, have fueled the success of those advertising partnerships.

“Our advertising clients remain excited about our highly engaged audience and the diversity and quality of our programming,” said Amy Reinhard, head of advertising at Netflix. “For season three of Bridgerton — the sixth most popular English-language television series of all time — we secured several international on-screen sponsors including L’Oréal, Pure Leaf, Amazon Audible, Puig, Booking.com, Stella Artois and Hilton.”

With the increasing reliance on advertising, the company is also in a good position to raise prices.

Netflix recently raised the price of its popular standard plan. In January 2022Microsoft announced that it was increasing the subscription price for the service to $15.49 from $13.99 previously. It also raised the price of its premium subscription by $2 to $19.99 per month at that time before raising the subscription price again in October to $22.99.

The company has yet to raise the price of its ad-supported offering, which was introduced less than two years ago and remains one of the cheapest ad plans among all major streamers at $6.99 per month.

Netflix has It was said before The company aims to make ads “a more significant revenue stream that contributes to sustainable, healthy revenue growth in 2025 and beyond.” As a result, the company will phase out its lowest-priced ad-free streaming plan, making the $15.49 Standard plan its cheapest ad-free offering.

Analysts said Standard’s plan is the one most likely to be affected by higher prices later this year.

Netflix’s record-breaking share price on Tuesday follows a selloff in mid-July that hit the stock after the company reported revenue guidance that fell short of Wall Street expectations for the current quarter. Shares also came under pressure from a more recent selloff in big tech companies that has since recovered.