Arturo Estrella has a message for recession naysayers: It could hit sooner than you think.Marketsread more
Local governments commonly share single service providers, making many vulnerable at once. On top of this, ransomware has often been used to mask more targeted, malicious...Technologyread more
Salesforce released its first earnings report since its $15.3 billion acquisition of Tableau Software, the company's largest deal ever.Technologyread more
Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
Kudlow also confirmed to CNBC that he supported a tax cut proposal floated earlier Thursday by Sen. Rick Scott, R-Fla.Politicsread more
VMware is following through on its proposal to buy Pivotal, a fellow Dell subsidiary, and expanding into cybersecurity with the acquisition of Carbon Black.Technologyread more
Google says it shut down hundreds of YouTube channels tied to misinformation around the Hong Kong protests.Technologyread more
It is a rare scenario where long-term interest rates suddenly fall below short-term interest rates.Real Estateread more
Investors are rushing to get a piece of its privately held rival Impossible Foods before it goes public, according to the Wall Street Journal.Food & Beverageread more
Weisler has been CEO at the company since 2015 when it split from HPE.Technologyread more
Companies want to know our values and if they work with us, "they want to be aligned with those values," Salesforce co-CEO Keith Block says.Mad Money with Jim Cramerread more
Netflix announced Tuesday it is raising prices on customers for the fourth time in its history.
Shares took off after the company said the increase will take effect right away, with the price jump expected to be between 13 and 18 percent.
The stock rose to near its high of the day as Wall Street analysts largely cheered the move in notes to clients, saying it showed confidence from management in the company's upcoming content releases.
Stifel analyst Scott Devitt headlined with, "Pricing Wind Beneath its Wings." He said the increase puts the service about in line with HBO Now and Hulu's premium service and that the company will be able to "continue its recent pace of domestic price increases every 16-18 months."
Goldman Sachs analyst Heath Terry hiked his price target to $420 from $400.
Here's what some of the major analysts have said so far:
"We are bullish on the company's ability to execute the pricing increase, though note in the near-term, domestic subscribers churn may tick up as the company introduces the new pricing levels to existing members. ... We see the potential for cautious 1Q guidance on domestic paid net subscriber additions due to this factor ... In the U.S., Netflix's new pricing compares to HBO NOW at $14.99 per month and Hulu's ad free product at $11.99. We believe it is possible Netflix will continue its recent pace of domestic price increases (every 16-18 months), as its Standard plan is still $2 below HBO's product with a significantly larger content offering."
"Investors will likely view this above-Street estimate increase quite positively, bolstering confidence in subscriber trends, pace of revenue growth and ability to achieve guidance for margin gains."
"We noted in our recent 'NFLX Monthly' note that we expect the content slate to strengthen into mid-year and to 'watch for tactical price increases into the strengthening content slate.' ... We view the read-through as positive as it relates to the company's confidence in the content slate and subscriber trajectory in 2019."
"We believe this action has a high probability of success, further fueling the Netflix flywheel. ... The simple point here is that this price increase – if successfully implemented – can generate a material boost to NFLX's profitability (we estimate $2.6B in Operating Profit in FY19) and/or help cover its Cash Content Costs, which we estimate at approximately $14B in FY19."
"We believe the primary determinant in the ability to raise price is subscriber perception of content quality. ... In Nov-18, we surveyed >1,100 U.S. subscribers and found that 71% of them feel Netflix content has improved in the past year. ... We believe, as long as the vast majority of subs perceive that the service is improving, Netflix will be positioned to periodically raise prices."
"We believe that these price increases reflect the incremental utility that subscribers see as hours of consumption per user grow with the growth in Netflix's content library and distribution ecosystem... While any price increase, particularly one this significant, is likely to be met with increased churn, we believe the value Netflix offers to subscribers and the strong content slate in the year ahead will largely offset that."