The 4th season of the wildly popular and nostalgic Netflix hit Stranger Things premieres on May 27th. And Wall Street is monitoring the hype around what may be the best show streaming this summer for signs of life at Netflix (NFLX).
Will Stranger Things S4 restore the streaming behemoth to its former glory or has Netflix reached its peak as far as dominating the streaming market?
It’s been a bruising year for NFLX owners so far. After breaking $700 a share in 2021, the stock has taken quite the beating (NFLX closed at $186.35 on Friday, May 20th). After Netflix announced a 200,000 subscriber loss in Q1 and an expected loss of another 2 million subscribers in Q2, traders on Wall Street were sent into a tailspin.
While NFLX beat their EPS and Revenue estimates, Global Paid Subscribers took a nominal hit that analysts estimate may cost the company $2 million in revenue each month…pocket change, yet enough to convince the bears to erase nearly 50% of Netflix’s market share. Is it reasonable?
Is Netflix Really on the Ropes?
There are some investors who have held out. Many forget how massive Netflix and its base are. With over 200 million active users, Netflix has more subscribers than Peacock (43 million), HBO Max (45 million), Hulu (42.8 million), Apple TV (19 million), Discovery+ (18 million), ESPN+ (14.9 million), and Paramout+ combined.
And while Netflix appeared to be on the ropes after what may be one of the bloodiest days on Wall Street for the streaming industry, the company appears undeterred.
In 2021, Netflix’s board approved a 5 billion dollar stock buyback (which investors typically view positively), and are now projecting growth in subscribers overall (by approximately 1 million new viewers).
What’s more, its release schedule this summer is packed with star-powered content that has passed the proof of concept.
| Title | Release | Relevant |
| The Pentaverate (Mike Myers) | May | Mike Myers |
| Operation Mincemeat | May | Colin Firth |
| Katt Williams World War III | May | Need we say more? |
| The Lincoln Lawyer | May | Neve Campbell |
| My Next Guess with David Letterman | May | Davide Letterman |
| Ghost in a Shell | May | Proven entity |
| Christina P. Mom Genes | May | Christina P |
| Stranger Things Season 4 | May | Winona Ryder, et al |
| Peaky Blinders | June | Proven entity |
| Halftime | June | Jennifer Lopez |
| God’s Favorite Idiot | June | Melissa McCarthy |
| Man vs. Bee | June | Rowan Atkinson |
| Resident Evil | July | New Series |
| Persuasion | July | Dakota Johnson |
| Rise of the Teenage Mutant Ninja Turtles | August | Established Franchise |
Of course, this list above is not exhaustive, and Netflix tends to stay tight-lipped about its plans, but it gives investors reason to believe that the next 3 months will be solid based on information that is publicly available.
These projects may be enough to keep Netflix on top with happy subscribers and investors, but a Stranger Things Season 4 confidence bump is what could really could do the trick.
To get that ball rolling, Netflix dropped an ST teaser on Friday that included the first 8 minutes of Season 4. It was just enough to kick the hype in the upside down of the Twitter-sphere into full gear. As of this writing (5/21/2022), the promotional cut had received nearly 3 million views (in 24 hours).
First 8 Minutes of Stranger Things Now Available to Stream for Free
Creepy and filled with set pieces that will please long-time fans, the eight-minute snippet of S4 was enough to send many fans into a tizzy. Which is exactly what the embattled streaming giant needs right now.
The cut opens with Season 1 villain Dr. Martin Brenner (Matthew Modine) at Hawkins National Laboratories on September 8, 1979, years before fans meet The Party and Eleven. As roughly two dozen children quietly play games and solve puzzles, Dr. Brenner asks one of the captive students if they are “up for some more lessons.” As Dr. Brenner walks through the halls, holding hands with the child, we’re treated to an easter egg in a short shot of Eleven’s cell labeled only “11.”
As Dr. Brenner monitors the child’s psychic abilities (in what appears to be remote viewing through Dr. Brenner), the facility seemingly comes under attack by an unseen force.
When Dr. Brenner investigates the cause of the disturbance he finds all of the children deceased, save one. “What have you done?” he asks.
Eleven, NFLX is counting on you.
On the hunt for something to stream this weekend? Subscribe now!