Netflix: can it maintain stock price momentum as thousands of subscribers cancel?

One in four UK Netflix [NASDAQ:NFLX] subscribers (27%) are looking to quit or cut back on the streaming service, a month after it introduced a crackdown on password sharing. A further 2.5 million account holders are eyeing the exit door, while a quarter of British viewers (25%) say they feel betrayed by Netflix’s rule change.

Two in five Netflix viewers who were piggybacking on another account (39%) plan to evade the ban, finding a way to keep viewing for free using a virtual private network to fool the platform or pirating its content. And one in four of those kicked off Netflix say they can’t afford to subscribe (27%), but a third (35%) now plan to sign up, adding up to an extra £140 million a year.

Despite the gloomy outlook, Netflix has recently enjoyed a spike in new subscriptions in America since tightening its rules.

It provides investors with something of a tightrope to walk, between further pressure by Netflix on its existing subscriber base, weighed against prospects for further expansion, perhaps at higher price levels.

Shares in Netflix have rallied markedly since late March, and are trading up over 42% over a six month period. Stock has jumped from $333 to hit $441 just before the 4 July holiday, at a time when many other tech stocks are still feeling the pain from investors.