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JPMorgan: we see Netflix stock growth potential by 17%


June, 09 2023
watermark Economic news

JPMorgan investment bank sees the growth potential of Netflix shares due to their low-cost advertising and the practice of exchanging paid passwords among users.


On Wednesday, the bank raised the target price of Netflix streaming service shares from $380 to $470. Netflix shares have already risen 37% since the beginning of the year, and there is every reason to expect this upward trend to continue. 


JPMorgan also raised its revenue estimate for Netflix, given the potential to monetize the service for the approximately 100 million households that use Netflix but do not pay for it by exchanging passwords.


Initially, Netflix tried to stop this practice and introduce paid password exchange, but this caused a negative reaction among users, and the company temporarily postponed the introduction of a program that encourages users to pay for password exchange with other people. 


It is predicted that by the end of 2025, about 33 million households sharing passwords will pay for access to the service, and the ratio of new subscribers to additional members will be approximately 50/50, while households will pay more to share their password.


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