Netflix (NFLX - option chain) shares are rising today after the company launched a new streaming-only subscription plan in the U.S., which allows users unlimited access to its online content for $7.99 a month. NFLX also announced price increases for its other DVD rental plans of at least $1 monthly. The unlimited streaming-only plan is cheaper than all its other unlimited offerings, so this move should be a win either way for NFLX. If customers continue with their current plans, then revenues increase. If customers downgrade to the streaming-only service or downgrade their DVD plan, overhead costs decrease. The only bad news would be if customers cancel their plans in outrage, which seems unlikely. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NFLX.
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FeedNetflix (NFLX) Debuts Cheaper Streaming-Only Option
Continue reading Netflix (NFLX) Debuts Cheaper Streaming-Only Option
Starbucks (SBUX) Will Raise Coffee Prices
Starbucks (SBUX - option chain) shares are rising today after the company said after the close yesterday that it plans to raise prices on certain beverages in response to an increase in the price of their beans. Up until this point, SBUX had kept prices steady and seen lower margins due to the increasing costs.
Also mentioned was the possibility that their packaged goods would see price increases. If you will need a little extra cash to cover your morning joe and think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SBUX.
Walmart Price Rollbacks Are Hard to Swallow
Question: When is a price rollback not necessarily a good thing at Walmart?
Answer: When I can't eat it.
I like a good bargain as much as the next guy. Save me twenty bucks on a circular saw when I need one and I'll be forever grateful. However, when it comes to bargains and price reductions, there is one fundamental rule that should always be kept in mind: You can't eat a deeply discounted blow dryer.
Continue reading Walmart Price Rollbacks Are Hard to Swallow
Gas prices dropped -- why did heating costs jump?
Over the past few months we have seen the price of gas fall from about $4.00 per gallon to under $2.00 per gallon in most locations.
The price of natural gas has also fallen 25% over the same period. Good news for homeowners, right? Wrong. Homeowners who heat with natural gas saw an increase of 5% in their heating bills. Customers are angry and rightly so. Complaints are pouring in to utility providers and regulators. Some homeowners have had to turn down their thermostats to save money.
Now, if you have electric heat, it's even worse. One third of the home owners in the Northeast use electricity to heat their homes. They have seen an increase of 5% blamed primarily on the cost of coal.
Heating oil prices have dropped by 13% but this affects only 7% of home owners.
By the time all these complaints are filed and investigated winter will be over. Meanwhile, a large population of homeowners will have been held hostage by the energy companies.
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