Will Netflix Stock See a Boost From Stranger Things?
"Stranger Things" debuted on Netflix this past week, and as one of the most popular series on the platform, it raises the question of whether investors should be buying in now.
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Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) 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.
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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.
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Netflix has been staring down the barrel of serious losses for more than year. Will things be turning around soon? Stranger things have happened.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
