It was just a year ago that Netflix’s stock was lingering in the $200 doldrums after it shocked the industry with alarming subscriber losses, kicking off a wholesale reconsideration of the streaming wars.
Since then, its shares have rebounded, more than doubling from its 52-week low, as its recent earnings results reassured Wall Street that efforts like a crackdown on shared passwords and an ad-supported tier were paying off in renewed growth, and Hollywood’s strikes didn’t seem to be having a visible impact on subscriptions.
While it remains far larger and more profitable than the competition, there’s a longer-term cause for alarm in Netflix’s performance.