Netflix stock is on a tear. But its big challenge is making sure people keep watching.

Published On Oct 5, 2024, 8:00 AM

Netflix's stock has surged by 50% since the start of the year as it continues to attract subscribers, now reporting over 94 billion hours watched in the first half of 2024. Significant subscriber growth is attributed to a crackdown on password sharing and a cheaper ad-supported tier. However, engagement levels have remained flat year-on-year, which raises concerns about Netflix's ability to sustain viewership and revenue growth, particularly in its advertising segment. Analysts predict Netflix may need to increase prices to maintain its financial performance, but a low engagement could dampen this strategy.