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Netflix Stock Doubles Its Value: Is It Better To Invest Before or After a Price Hike?

Netflix is back in the spotlight — this time for how its stock performance stacks up against its latest price hike.

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After smashing expectations in Q4 2024, reporting a record 18.9 million new subscribers to its shareholders, Netflix stock (NFLX) briefly hit $1,000 before closing just under $954, according to Yahoo Finance, with an analyst calling the quarter “near flawless.”

As of April 8, 2025, shares were trading at $870.40 — down from the all-time high of $1,064.50 on February 14, 2025, but still nearly double where they stood a year ago. Growth was driven by live sports, big-name originals and a $15 billion stock buyback.

But is this the right time to invest in Netflix stock?

Despite these wins, Netflix hiked prices. Again.

The standard ad-free plan in the U.S. is now $17.99 per month, while the premium tier climbed to $24.99. This didn’t go over well with many users, and, for a company with soaring profits, some see it as tone-deaf.

But from Netflix’s point of view, the strategy makes sense.

Rising production and licensing costs, plus heavy investments in global content and live sports, need to be paid for. And when subscriber growth is already strong, a price hike becomes an easy lever to pull. Investors might see it as a smart business decision, even if subscribers don’t.

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The price hike puts a spotlight on the difference between subscriber satisfaction and shareholder value. Netflix’s financials suggest the company is winning in the streaming wars, but with every bump in price, there’s risk of backlash or cancellations.

So far, those fears haven’t materialized. Past price increases have caused only small, short-lived dips in subscriptions. In 2022, for example, Netflix reported to shareholders that lost numbers due to price changes were “tracking in line with … expectations.”

Many subscribers seem to accept the tradeoff for content they can’t find elsewhere.

Price hikes rarely tank Netflix stock, because they signal pricing power: the ability to raise rates without losing too many customers. In the eyes of investors, that’s gold.

That said, timing matters. With the stock already up nearly 100% year-over-year as of early April, some short-term cooling off wouldn’t be shocking. But for those with a longer view, the fundamentals remain strong.

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