🐺Netflix Regulations Led To Their Stock Surge???

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When Netflix cracked down on password sharing, their stock soared.

Costco is doing the same with their membership cards right now.

If you’re an investor, read this 👇

Costco now requires you to scan your membership card when you enter their stores in select locations.

The image on your card appears on a larger screen for door-side employees to verify.

Costco is likely doing this for several reasons:

• Collect customer data

• Track purchasing behavior

• Crackdown on membership sharing

• Track your time shopping in their stores

Honestly, I’m surprised they haven’t done this sooner.

Why is this significant?

Because membership fees account for 66% of Costco’s bottom line.

The days of an employee haphazardly checking your membership card are over.

Sharing cards won’t be as simple anymore.

Which means memberships will soar.

Costco also recently raised their membership fees for the first time in 7 years.

Last September, fees rose from $60 to $65, while executive memberships rose from $120 to $130.

Keep in mind that memberships have insane profit margins + recurring revenue.

Will this have serious implications for their stock price?

Netflix’s stock soared when they cracked down on password sharing in May 2023.

They received a surge in new subscriptions, which is likely what will happen with Costco.

More stores across the U.S. and Canada will slowly roll out these new membership scanners.

Costco’s profit will rise from these changes.

Consider carving out a piece for yourself.

Disclaimer:

The contents of this thread are purely for entertainment, not financial advice.

Every investor has different goals, time horizons, risk tolerances.

Do your own research before buying any stock.

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