Good Evening! On Thursday, stock prices declined as Treasury rates increased and investors analyzed a speech delivered by Federal Reserve Chair Jerome Powell.
It was a roller coaster of a day for all three indexes with the Nasdaq Composite decreasing by 0.96%, the Dow Jones falling by 0.75%, and the S&P 500 sliding by 0.85%.
THE MARKET IS HAPPY WITH NETFLIX
Netflix (NFLX) disclosed a substantial increase in its third-quarter subscriber figures, amounting to roughly 9 million. Additionally, the company revealed its intention to raise rates in the United States, United Kingdom, and France.
- Revenue: $8.54 Billion vs. $8.52 Billion Expected
- New Subscribers Added: +8.8 Million vs. +6.2 Million Expected
- Earnings Per Share: $3.73 vs. $3.49 Expected
The price increase has been confirmed! Netflix has announced that the pricing of its Basic and Premium subscriptions in the US would increase to $11.99 and $22.99, respectively (a $2 increase for each plan). However, Netflix’s ad-supported plan priced at $6.99 and Standard plan priced at $15.49 will remain unchanged in terms of cost.
Let’s check in on the ad-tier plan! Regarding advertising, Netflix reported a significant increase in the adoption of its advertisements plan, with membership growing by about 70% on a quarterly basis. Additionally, in countries where the ad tier is accessible, around 30% of customers have subscribed to it. However, the company said there’s still “more work to do to scale this business.”
INSURANCE IS INCREASING
According to a recent poll conducted by the private health foundation KFF, the average cost of employer-provided health insurance plans increased by 7% this year. Family plans now cost an average of $23,968, while individual policies cost an average of $8,435.
So what is the reason for it? According to health policy experts, the significant increase in healthcare costs, which is the largest since 2011, could possibly be related to inflation, as well as the rise in pay for healthcare professionals and the consolidation of hospital systems.
So what does this look like? The rise resulted in an additional approximate cost of $500 for those with family plans and $75 for individuals, further reducing the purchasing power of consumers, who are already restricted by earnings that have not kept pace with significant inflation. On top of that… According to a poll conducted by KFF, 25% of employers stated their intention to raise workers’ premium payments during the next two years.