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Market Wrap: Netflix Needs to Cut Prices, Analyst Says

Video Credit: The Street - Duration: 01:00s - Published
Market Wrap: Netflix Needs to Cut Prices, Analyst Says

Market Wrap: Netflix Needs to Cut Prices, Analyst Says

Netflix could lose between 5 and 10 million of its 60 million subscribers if it does not cut prices, according to a Needham note Thursday.

The company charges between $9 and $16 a month, well ahead of Disney's $7 a month, and Apple's $5 a month.

The sweet spot for Netflix is $6 a month, subsidized with advertising.

YTD, the stock is still up about 1%, but over the past three months Netflix has dropped nearly 30% as competition for cord cutters ramps up.

Shares of Facebook rival Snap Inc.

Are down big after Facebook debuted its new "Threads" extension for Instagram.

Threads is a standalone, camera-first messaging app that will allow users to stay connected with close friends through photo and video messages.

"It opens directly to the camera and allows you to add shortcuts, so you can share what you're doing in just two taps," Facebook wrote in a blog post introducing the service.

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