What's Going On With Netflix Stock?

Netflix Inc NFLX shares are trading lower Tuesday. Reports indicate the company's new ad-supported tier is off to a slow start.

What Happened: Netflix launched its new ad-tier in early November to make its streaming services more accessible for a larger number of households. The new ad option is failing to gain much traction, according to a Wall Street Journal report.

The new ad-tier was the least popular option among the company's service options in November. The plan accounted for just 9% of new sign ups in the U.S. last month.

The report indicates that 57% of ad-tier subscribers were people coming back to Netflix or signing up for the first time, while approximately 43% of ad tier subscribers downgraded from more expensive plans. 

On Monday, Morgan Stanley analyst Benjamin Swinburne maintained Netflix with an Equal-Weight rating and raised the price target from $250 to $275.

See Also: Sharing Netflix, Amazon Prime Password With Family Or Friends? You Are 'Breaking The Law' In This Country

NFLX Price Action: Netflix has a 52-week high of $620.61 and a 52-week low of $162.71.

The stock was down 2.68% at $280.59 at the time of writing, according to Benzinga Pro.

Photo: Tumisu from Pixabay.