From Couches To Trading Floors: Dissecting The Impact Of Netflix's Password-Sharing Crackdown On Its Stock Price

• In response to declining subscription rates, Netflix is combating password sharing, a practice used by nearly half of its global user base.
• Savvy users have bypassed this restriction using a VPN app called Meshnet, allowing multiple users to share a single IP address.
• Since the password-sharing crackdown, Netflix's stock price has surged over 11%.

In an effort to protect its customer base and boost revenue, Netflix Inc NFLX has taken decisive action against the estimated 100 million households who are sharing accounts. This figure makes up almost half of the company's global user base.

This new policy is a bold attempt by the streaming giant to revive its subscription rate, which has recently declined.

Netflix has implemented a new policy to confirm that accounts are being used within the same household by checking a device's IP address and other identifying factors.

However, some tech-savvy individuals have found a way to bypass these restrictions using a VPN app called Meshnet.

This app allows multiple users to share a single IP address, making it extremely difficult for Netflix to identify the true source of a connection.

Meshnet has become a beacon of rebellion for those looking to avoid restrictions and limitations.

While it remains to be seen how much of an impact Meshnet will have on Netflix's bottom line, the consequences of this VPN workaround could significantly impact the streaming giant's future.

Netflix's crackdown on password-sharing has unexpectedly affected the stock market. Whether it was due to this or other factors, since imposing the crackdown on password sharing, its stock price surged by over 11%.

The boost was especially evident on May 30th, when the price opened with a 4% increase from the previous day.

However, the company faces a challenging barrier, resistance levels that include the crucial $400 psychological round number and the weekly 50 simple moving average. This cluster of resistance can significantly impede the stock price's growth potential.

Netflix faces a formidable challenge in overcoming the existing resistance.

However, should it succeed, it would signal a shift in market perception that could inspire enough confidence among sellers to allow for a substantial recovery of the stock, which previously saw a decline of over 75% from November 2021 to May 2022.

The current challenges facing Netflix, including its strategic shift and the use of VPN workarounds, have resulted in an intriguing storyline.

The question remains whether or not Netflix's stock will overcome the resistance and if the company can successfully address the VPN loophole.

These factors will ultimately shape the future of this massive streaming platform.

After the closing bell on Wednesday, June 31, the stock closed at $395.23, trading down by 0.57%.