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Netflix Stock Riding High On ‘Squid Game’ Buzz

Netflix stock has gotten a lift lately from the rollout of its fall content slate, led by hit dystopian drama “Squid Game.”




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Launched on Sept. 17, the “Squid Game” series from South Korea is on track to become one of Netflix‘s (NFLX) most-watched television shows ever. It also kicks off a busy release schedule for new movies and TV series that the streaming video leader hopes will rekindle its subscriber growth.

In morning trading on the stock market today, Netflix stock rose 4.2%, near 628.85. Earlier in the session, it notched a record high 629.90.

On Tuesday, Cowen analyst John Blackledge reiterated his outperform rating on Netflix stock with a price target of 650.

Strong Content Slate Ahead

Netflix is well positioned for growth thanks to its strong second-half 2021 content slate, Blackledge said in a note to clients.

“Our proprietary recurring U.S. survey suggests Netflix continues to lead living-room TV, as 28% of respondents said Netflix has the best video content, well ahead of other streaming and linear services,” Blackledge said.

Blackledge estimates that Netflix added 3.63 million subscribers in the third quarter, slightly above the company’s guidance of 3.5 million. Netflix plans to report third-quarter results on Oct. 19.

“The second-half 2021 original content volume is accelerating and likely to drive higher engagement and potentially lower churn,” he said. “Meanwhile, investors are focused on net sub adds, in particular given the back-half weighted content slate that could drive higher gross adds.”

Netflix Stock Extended From Buy Zone

On Sept. 2, Netflix stock touched a buy point of 593.39 out of a 31-week consolidation period, according to IBD MarketSmith charts. On Tuesday, it rose above the 5% buy zone, which extends to 623.06, based on IBD trading principles.

Upcoming Netflix content this fall and winter includes big-budget movies “Red Notice,” starring Ryan Reynolds, Gal Gadot and Dwayne Johnson, and “Don’t Look Up,” starring Leonardo DiCaprio and Jennifer Lawrence.

The second half of 2021 also will see the second season of “The Witcher,” third season of “You” and the premiere of “Cowboy Bebop.”

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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