Netflix's Strategic Shift To Live Sports And A Revamped Subscription Model Catapults Its Stock To Record Highs Surging Over 300%

• Netflix's stock reached a new all-time high, driven by an increase in advertising sales over the past year.
• Anticipated releases like Squid Game 2 should boost advertising revenue.

Netflix Inc's NFLX stock has recently soared, achieving a record height that surpassed its previous all-time high. The climb to an intraday peak of $711 was driven largely by a remarkable 150% increase in advertising sales over the past year.

This growth stems from their sharpened advertising strategy, leveraging its vast and engaged user base and partnering with major brands like LVMH and Google.

Expanding its strategic initiatives, Netflix is diversifying its content by adding live sports to its lineup. Starting January 2024, subscribers can enjoy NFL games and WWE broadcasts.

This shift is expected to widen their audience and increase its attractiveness to advertisers eager to benefit from live sports viewership.

Furthermore, Netflix continues to enhance its entertainment offerings with anticipated releases such as Squid Game 2, aligning with its aim to attract more viewers and boost advertising revenue.

Despite its strong push into ad-supported content, the company is also adjusting its subscription model. The company plans to raise its subscription prices, including another increase for its Standard plan this December.

As Netflix phases out its lowest-priced ad-free option, the Standard plan will become the most affordable ad-free choice, a move analysts believe highlights their significant pricing power.

Reflecting on recent stock performance, Netflix has shown a remarkable recovery. After a steep 76% drop from November 2021 to May 2022, the stock not only recovered but also reached new heights over the next 27 months, moving up over 300%.

It encountered significant resistance, especially around the $500 mark, which was the high in 2023. Although it almost exceeded the previous all-time high last month, it was only this month that the stock briefly broke through, surpassing the November 2021 all-time high of $700 this Tuesday.

Since then, there has been a slight pullback as some investors sold, fearing this peak might cap the stock's value. However, if Netflix’s stock maintains momentum, it could continue to rise and present new buying opportunities.

Watching how the stock handles these key levels will be crucial for predicting its future path, where a successful breakout could indicate more gains, while a failure might suggest declines.

After the closing bell on Thursday, August 22, the stock closed at $688.96, trading down by 1.17%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.