Netflix Raises Membership Fees

Historically, a raise of this size has not driven anyone away from their subscriptions and can greatly raise revenues by near 10 percent for the company. Not to mention very strong technical indicators are present as moving averages crossover and the stock comes back up from a recent sell off after hitting a previous high. Now it has broke that high along with this news.

As a long term investment I don't like Netflix the PE is way to high for what the company is. Netflix depends on astronomical growth to retain its price and over the course of 5-10 years that rate is unsustainable for a long term investment.

As for the short term like say a month or two Netflix is very likely to cross over 200 soon especially if their coming earnings call doesn't disappoint. There is a little chatter of Netflix originals not being what they used to be(as a Netflix subscriber I agree) so we may see that ding earnings. I wont be trading this personally, I think the options are too expensive at the moment for my brokerage account and the other positions I have running, but if you do be cautious around earnings! Possibly by a weekly at the money put to be delta neutral into earnings.