Stocks to Sell: Netflix (NFLX)
Netflix, Inc. (NASDAQ:NFLX) is still the undisputed king of on-demand video, driving a steady and consistent gain over the course of the past year. The end result? NFLX shares are now up 75% since this point in 2016.
That’s a tough act to follow, especially now that it’s starting to sense a little saturation with its overseas business. There’s another more specific reason, however, that you may want to add Netflix to a list of stocks to sell before things get uglier.
That is, it’s testing the impact of higher subscription prices in Australia. The buzz is that it could be something Netflix also has planned for its key U.S. market.
Though Netflix has raised prices before, the backlash was more bark than bite. That was before consumers had an array of choices, though. Other on-demand options are readily available now, and Netflix may be surprised how willing consumers are to cancel their subscriptions.
That’s not a risk many NFLX shareholders can afford to take anyway.