Netflix Hits Record as ‘Squid Game’ Extends Content-Fueled Rally
(Bloomberg) -- Netflix Inc. shares closed at a record on Thursday, the latest sign that Wall Street is optimistic a steady stream of hit shows will keep subscribers coming.
Recent stock gains have been fueled by the return or debut of well-known titles, including new seasons of “The Witcher” and the sitcom “Seinfeld.” But the latest lift has come from the South Korean action-drama series “Squid Game,” whose massive popularity appears to be an early indicator of stronger user trends, Bloomberg Intelligence wrote on Wednesday.
Netflix “could be rounding a corner” following a slowdown in subscriber growth earlier this year, analyst Geetha Ranganathan wrote. The success of “Squid Game” at driving user growth “is most evident in the Asia-Pacific region, yet downloads jumped globally.”
YipitData estimated that global Netflix downloads have reached their highest levels of 2021, driven by the Asia-Pacific region in particular.
Shares rose 1.9% to $610.27 on Thursday. So far this week, the stock is up 3%, making it a pronounced outperformer relative to other high-profile technology and internet stocks. The Nasdaq 100 Index is down more than 4% this week, as rising bond yields pushed investors to sell growth names.
Netflix is scheduled to report its third-quarter results in October.
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