It’s hard not to think of Netflix when we talk about a company that has benefited from the health crisis as the platform has multiplied its number of subscribers during the various lockdowns. Today, after the close of the New York session, the Netflix group will publish the results for the third quarter of the year. Results that could affect the streaming platform’s share price.
Squid Game. For some observers, the current good results of the American company Netflix are closely linked to the success of the South Korean series. If Netflix has suffered from competition in recent months, the American platform now seems to be riding the front of the wave. Thanks to his new goose that lays golden eggs? Elements of the answer in figures!
Focus on Netflix stock
The following chart shows the Netflix share price since the start of the year.
After a sumptuous start to the year and a first peak on January 20, the stock experienced a long phase of volatility. As evidenced by the many bullish peaks visible on the chart between mid-January and mid-April. If the asset was close to 600 dollars on January 20, the title experienced a significant decline materialized by the low point of April 8. A Netflix share is then traded for less than $ 500.
In the spring, Netflix shares experienced a new phase of decline. A decrease in the price partly due to the emergence of new streaming platforms. With Disney +, Amazon Prime Video and Apple TV + in particular. But the pandemic that has long been a boon to Netflix has also turned against the platform. The worsening of sanitary conditions and the successive confinements then got the better of the schedule of many series shootings. Less novelty = Fewer customers for the streaming giant.
Nevertheless, the asset seems to be moving forward over the last 3 months. As suggested by the stock’s nearly 20% rise during the period. An increase to be put in perspective compared to the evolution of the NASDAQ 100 stock market index, made up of many technology stocks. An index which only increased by 3% over the period.
Squid Game: A Boost for the Netflix Stock Price?
For many, the headline’s rise in recent weeks is believed to be due in large part to the runaway success of the Squid Game series. A few days ago, Netflix told CNN that the series had been watched by more than 117 million accounts around the world.
In an internal note unveiled by Bloomberg, the management of Netflix estimated close to a billion dollars (891 million), the fallout from the South Korean series. Here are a few figures, the impact of the series on the world of streaming:
- 66% of platform users have watched the entire series while 89% have watched at least 75 minutes
- $ 891 million in economic spinoffs. The series will have cost the sum of $ 21 million. Or a return on investment of more than 4,100%.
- Three weeks after launch, the series emerged as the best series launch on the Netflix platform.
Anyway, since the launch of Squid Game on the platform on September 17th, Netflix’s share price jumped 8%.
Netflix results: figures expected for Q3
In the coming hours, the financial markets will be particularly attentive to the publication of the results of the American company. Both concerning the financial results of Netflix but also the operational figures. Are thus expected:
- 3.5 million new subscribers on T3. With a projection of 8 million over the last quarter of the year
- Expected turnover: $ 7.48 billion
- Expected earnings per share: $ 2.57
If the figures for the past quarter are particularly important for investors, so are future forecasts. Thus, the projection of the number of new subscribers for Q4 should play its role in the share price. Studies tend to show that the forecasts of the previous quarters were then highly correlated with the evolution of the share price.
The announcement of a second season of Squid Game could also have a positive impact on Netflix’s share price. First elements of response as of this evening after the close of the American stock exchange.
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