Will Netflix Stock See a Boost From Stranger Things?

hocus-focus / iStock Unreleased via Getty Images

Netflix Inc. (NASDAQ: NFLX) was one of the top streaming services for the longest time, but the stock has been absolutely crushed over the past year, raising many questions. One of these is if or when the stock will bounce back? One analyst ponders these answers, considering the arrival of the newest season of hit “Stranger Things.”

KeyBanc analyst Justin Patterson notes that “Stranger Things” season 4 represents Netflix’s strongest debut, with 286.8 million viewership hours last week. This corresponds to 42% more hours than “Money Heist” season 5 and 48% more hours than “Bridgerton” season 2.

Patterson notes that investors should be cautious about interpreting Netflix viewership hours as factors like the subscriber base at the time of launch and number of episodes can distort series-to-series comparability. Thus, while “Stranger Things” had over 40% more hours viewed than the next most popular series, it is also true “Stranger Things” episodes were longer, which implies either less engagement or completions, he adds.

Ultimately, KeyBanc reiterated a Sector Weight rating on the shares, as the firm believes catalysts are unlikely to manifest meaningfully in estimates until the second half of 2023.

Netflix has been staring down the barrel of serious losses for more than year. Will things be turning around soon? Stranger things have happened.

Shares of Netflix closed most recently at $192.91, in a 52-week range of $162.71 to $700.99. The consensus analyst price target is $331.45. Over the past 52 weeks, the stock is down more than 61%, and shares are down about 68% year to date.

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.