After endless obituaries by speculators and bloggers across the globe, Netflix has yet again proven that it is the streamer to beat going into 2023 as Netflix stock jumps 50 percent.
Last spring it was reported that Netflix would lose over 2 million subscribers in Russia after pulling out of the country over its invasion of Ukraine. Complicating things further, as lockdowns began to lift, investors wondered if Netflix had peaked and whether the reopening of America and the Russian war may finally give other competitors the boost needed to dethrone the OG streamer.
Investors dumped the stock in droves. We advocated for Netflix stock, arguing that its strong summer lineup, in addition to a Stranger Things boost over the summer, would realign the company to its new reality, but the pile on just kept coming. Netflix stock nearly dipped below $150 at one point, from a high of around $700.
“All of the NFLX bulls have disappeared,” Bloomberg wrote in June.
We predicted that the stock would rebound at least 50% within one year of the release of Stranger Things. Today, the stock is again trading at nearly $300 per share, almost double it’s mid-year low.
The bottom line is that Netflix is still the streamer to beat. It has proven time after time that it has the ability to adapt to the realities of the market, it’s only true competitors being Prime, Disney, and HBO Max.
Many have claimed that Disney is Netflix’s only competition – with new subscribers expected to rival Netflix by 2025, however, HBO Max and Netflix share a common statistic; less than 10% of their customers plan to cancel the service (a very important metric in a market in which customers cancel after their favorite program is finished airing for the year).
This is a very strong indication of both streamers’ position in the market, and again, Netflix has proven that it has the ability to adapt to the changes of a dynamic environment; while HBO Max, has some other stuff going on right now.
So, will this news send Netflix’s stock back to its 2021 Fall highs? Impossible to know, but we are today, still, very optimistic about Netflix’s future. Bears on Wall St. be damned, Netflix is simply the most agile and solution-driven streamer in the industry and has a culture that is adaptable and built to be flexible and innovative in a market that thrives on rapid change.
So, not to gloat, but there’s a reason Netflix is still considered the best streamer around the world.
From PRNewswire
Netflix, Inc. (NASDAQ: NFLX [Netflix Stock]) has released its third-quarter 2022 financial results by posting them to its website. Please visit the Netflix investor relations website at http://ir.netflix.net to view the Q3’22 financial results and letter to shareholders.
A video interview with Netflix co-CEO Reed Hastings, co-CEO & Chief Content Officer Ted Sarandos, Chief Financial Officer Spence Neumann, COO & Chief Product Officer Greg Peters and VP, IR & Corporate Development Spencer Wang will be available at 3:00 p.m. Pacific Time at youtube.com/netflixir. The interview will be conducted by Doug Anmuth, JPMorgan. Questions that investors would like to see asked should be sent to douglas.anmuth@jpmorgan.com.
About Netflix stock
Netflix is one the world’s leading entertainment services with 221 million paid memberships in over 190 countries enjoying TV series, documentaries, feature films and mobile games across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.