Bernstein analyst Todd Juenger said that Alphabet Inc.'s (GOOGL)(GOOGL) decision to raise its YouTube TV price to $65 a month from $50 a month highlights the underappreciated pricing power that fellow streaming outlet Netflix Inc. (NFLX) has. "The biggest investor pushback/concern/bear thesis on Netflix continues to be center on their ability to raise price over time," he wrote. "YouTube TV just raised its monthly price by $15, more than the entire monthly cost of Netflix. Said differently, a U.S. consumer can get an entire year of Netflix for less than the price of 2 months of YouTube TV." He argued that Netflix should be able to increase monthly subscription prices by about $1 every other year "for the foreseeable future." As for the YouTube price increase, Juenger said the timing seems "surprising" given high unemployment in the midst of the pandemic and virtually no live sports coverage. He has an outperform rating on Netflix shares with a $504 price target.
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