What's Going On With Netflix's Stock Today?

Netflix Inc’s NFLX stock shot higher Thursday on reports indicating the company's ad-supported subscription tier has nearly 5 million global monthly active users. 

According to a report from the Verge, the company disclosed the ad-tier subscription metrics during its 2023 Upfront Presentation. Executives from Netflix called the early signals “promising” and said engagement on the ad-based tier mirrored engagement on Netflix’s traditional streaming platform. The number of monthly active users for the ad-tier is crucial as it could determine the price that Netflix is able to charge for ads on its service.

Netflix’s new tier also opens the door at a cheaper price point for users that may have been priced out in the past. Netflix with ads cost only $6.99 a month, which is about $3 cheaper than its most basic ad-free subscription. 

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Price Action: Netflix’s stock has been on an incredible run throughout the past few months. The stock shot higher by more than 10% at one point Thursday morning, up to $375.47 a share, according to data from Benzinga Pro. The stock is up more than 100% throughout the last year.