Netflix Stock Hits All-Time High... Anticipation for Squid Game 2 and More

Good Content → Positive Cycle of Ad Inflow
Continuous Profitability Improvement... Contrast with Competitors

Video streaming company Netflix's stock price reached an all-time high.

On the 20th (local time), Netflix closed at $698.54, up 1.45% from the previous trading day, on the New York Stock Exchange. This price is higher than the previous closing record of $609.65 on July 7. Earlier that morning, the stock price even rose to $711.33, marking an intraday all-time high. The previous intraday high was $700.99, recorded in November 2021.

Netflix's stock price has risen for six consecutive trading days. Its market capitalization increased to $299.8 billion (approximately 400 trillion KRW) based on the closing price that day. Bloomberg reported, "It has increased by about $90 billion (approximately 119.8 trillion KRW) just this year."

Netflix's year-to-date stock price increase is 49.10%. Considering that the Nasdaq Composite Index, which is technology stock-heavy, rose by 20.66% during the same period, this growth rate is remarkable. This contrasts with competitors such as Walt Disney (-1.07%), Warner Bros. Discovery (-33.36%), and Paramount Global (-24.03%), which posted poor performances during this period.

Netflix's recent stock price rise is interpreted as reflecting market expectations for sequels to popular series like 'Ojingeo Geim 2' (Squid Game 2). The market is analyzing that Netflix's profitability will continue to improve through a virtuous cycle of advertising inflows driven by good content.

On the same day, Netflix announced advertising partnership deals for drama series such as 'Ojingeo Geim 2' (Squid Game 2), 'Wednesday', 'Outer Banks', 'Happy Gilmore 2', 'Ginny & Georgia', the weekly World Wrestling Entertainment (WWE) program 'RAW', and the American football (NFL) games broadcast on Christmas. Netflix also reported that its prepaid advertising commitments this year resulted in a 150% increase compared to last year.

U.S. media outlet Variety explained, "Although Netflix's advertising commitment amounts are still smaller compared to traditional competitors like Disney and NBCUniversal, advertisers are increasing contracts with expectations that subscriptions to advertising plans will grow, fueled by Netflix's popular series."