Netflix is upside down on Wall Street … and Stranger Things is their great salvation. The popular streaming platform has plummeted more than 10% in the market after publishing results in which it added fewer subscribers than expected by the consensus of analysts. But hope is not lost and is found in the adventures of a group of eighties youth.
Why do analysts continue to recommend ‘buy’ Netflix titles despite its recent collapse? Because they still rely on the narrative of the platform of Reed Hastings and Ted Sarandos . A narrative sustained, in good part, by its jewel in the crown: Stranger Things.
40 million of a total of 155 million users saw the third season of the series in the first days after its release beating all the records of the platform. And all, four days after the company’s second quarter accounts were closed, so the impact of its landing on Netflix has not been recorded in these.
From Morgan Stanley maintain their support for Netflix and ask: “Has anything changed in the last three months? We do not believe it, so we reiterate our estimates for the rest of the year and, if fulfilled, 2019 will be another record year for the platform in terms of average revenue growth per user “.
In Piper Jaffray bet because Netflix “will continue to take a good market share although the slow growth of subscribers demonstrates the importance for the company to create attractive content to attract new customers.” And part of this content will be reflected precisely in the second half of the year with the new seasons of Stranger Things, Orange is the New Black, The Crown … and films directed by renowned filmmakers such as Martin Scorsese and Michael Bay.
One of the key dates will be to see if Netflix holds the stake of Disney + , the streaming platform that will reach the US market next November 12. The analyst Scott Devitt believes that then “Netflix must demonstrate, as it has done before, that its proposal is still one of the best in the sector”.
Expectations are high and most analysts do believe that Netflix will be able to weather the storm for the rest of the year. From JP Morgan point out that “we continue to believe that Netflix’s second semester in terms of content may be the best in its history.”