By Stephen Karmazyn, BA

Published: December 23, 2016

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Stephen Karmazyn, BA
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Netflix Stock: This Could Be the Next Trigger for Netflix, Inc.

netflix-stockWhat “The Crown” Means for the Future of Netflix Stock

Netflix, Inc. (NASDAQ:NFLX) showed a gain of one percent Wednesday after analysts praised the success of its new original content “The Crown.”

While one percent is hardly a game-breaking surge, what’s interesting to note for the future is how Netflix stock came in to this gain. “The Crown,” the streaming service’s new show about Queen Elizabeth II, has received widespread critical and commercial acclaim, which led Loop Capital’s David W. Miller to predict a boost in fourth-quarter results. This is a pretty novel way of looking at Netflix stock and predicting the future of the price. (Source: “‘The Crown’ Will Bolster Netflix’s Q4 Numbers,” Barron’s, December 21, 2016.)

For instance, you could look at this year’s hit, “Stranger Things,” as another fulcrum from which NFLX stock pivoted. While the stock took a hit the day the show premiered, as buzz and pop culture began to celebrate the show, the stock began once more peaking upward. There’s a lot more to Netflix stock’s success since July, of course, but that’s another interesting and potentially useful way of looking at the share prices moving forward.

And of course, NFLX stock is by no means the only player in the streaming market. As Amazon.com, Inc. (NASDAQ:AMZN) and others get into the online original content war, you can expect more dips and surges based around hit shows.

“The Crown” exemplifies that at the current moment, but investors might do well to ensure they pay attention not only to the business development side of the equation, but also how some killer products these companies push out can have pretty profound effects on the share prices.