Motley Fool Hidden Gems Investing Netflix and Tesla Play With Pricing
Jul 21, 2023
Ron Gross and Andy Cross, senior analysts at Motley Fool, delve into Netflix's surprising shift to higher-tier plans and the abandonment of its basic offering. They also explore the buzz around Johnson & Johnson's recent spin-off and discuss whether Tesla's margin concerns are overstated. Meanwhile, marketing expert David Meerman Scott shares intriguing business lessons inspired by the Grateful Dead, emphasizing community-focused strategies. Together, they unpack vital trends in travel, consumer spending, and notable stocks like Toro and Mueller Industries.
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Netflix Growth
- Netflix added 6 million new customers in Q2 but offered a weaker Q3 forecast.
- Revenue growth slowed due to the still-developing advertising business and increased subscribers in lower-paying regions.
Netflix Pricing
- Ron Gross finds Netflix getting expensive, questioning their pricing power with rising subscription costs.
- Andy Cross highlights Netflix's profitability and free cash flow as advantages for content investment.
Netflix Basic Plan Removal
- Netflix is discontinuing its lowest-cost basic plan.
- They seem to be pushing users toward the ad-supported model, according to Dylan Lewis.
