Netflix Stock 11% Up Following Crackdown On Password SharingNetflix has made a strategic move to curb account sharing by nearly half its global user base to boost revenue and subscription rates.
The policy checks a device's IP address to confirm single-household usage, but tech-savvy users have bypassed these restrictions with a VPN app, Meshnet, muddling Netflix's ability to identify user connections from different locations.
This could potentially affect Netflix's bottom line.
Interestingly, following the announcement of the crackdown, Netflix's stock price surged by over 11%, peaking on May 30th with a 4% increase from the previous day.
However, with resistance levels at the $400 round number and the weekly 50 simple moving average, the company has a hurdle to overcome for stock growth.
Overcoming this resistance could signal a substantial recovery from the 75%+ decline seen from November 2021 to May 2022.
As Netflix faces challenges like the VPN loophole and strategic shifts, questions arise about the future course of the company and its stock.
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