The Best Way to Beat Inflation is to Buy Popular Streaming Stock-Netflix

  The Best Way to Beat Inflation is to Buy Popular Streaming Stock-Netflix Here's Netflix top quality company whose success is considered a temporary or permanent price increase.   As the pandemic restrictions eased and the economy progressed, the most important and interesting issue was the rise in prices. For investors trying to position their portfolios correctly, inflation concerns are definitely on their minds today. To avoid it concerns, the primary importance of investors is to position their portfolios well. The best way to achieve this is to own shares in companies that exhibit pricing power. That's why it's worth taking a look at the well-known streaming stock.

Asking the customer to pay more

Netflix NFLX (NASDAQ) $595,72 +13,65 (+%2,35), a pioneer in streaming, has reached approximately 209 million subscribers worldwide, generating $27.6 billion in sales in the last 12 months. Apart from that, one of its most important features is the ability to raise prices. Therefore, it has become the company that finds the best way to hedge against inflation for the investor. In April 2014, the standard subscription price in the US market increased from $7.99 to $8.99 first and then $1 more in 2015, respectively.

Here's Netflix top quality company whose success is considered a temporary or permanent price increase.

  On the contrary, the number of consumers increased by 63% in 2015 and 2016. In 2019, Premium and standard subscribers had to see an increase of $2 and basic subscribers of $1. Netflix increased its membership by 28 million in 2019, proving that the impact of the hikes on subscriber growth was minimal. All of this should ease any investor's fears about inflation.

What are the advantages of the internet business model?

They cite supply chain issues, rising commodity costs, and a shortage of truck drivers in transportation as the top challenges companies face. Netflix doesn't have to worry about any of this. Offering video entertainment over the Internet allows Netflix to avoid these annoyances. All of this makes Netflix a solid stock to own in times of inflation. Here's Netflix top quality company whose success is considered a temporary or permanent price increase.    

Source: The Motley Fool

 

You may also be interested in:

 

Amazon Doesn’t Intrude on Industrialism.