835 Reasons to Invest in Netflix Stock Right Now
There’s little question that Netflix (NASDAQ:NFLX) has created a windfall for early investors, generating returns of more than 43,300% in 20 years. Furthermore, those who invested in the streaming stock just five or ten years ago have beaten the market by a wide margin, with gains of 290% and 3,800%, respectively, during those periods, compared to 105% and 260% for the S&P 500.
However, Netflix’s stock has recently fallen out of favor with some investors. The most common bearish narrative goes something like this: Once, Netflix was the only streaming game in town. Now, there is growing competition and a host of alternatives. Netflix won’t be able to keep up the frantic pace of original content additions and will continue to lose market share as a result. Sound familiar?
Thing is, that argument misses out on several very important factors. In fact, there are 835 reasons investors should ignore the narrative and buy Netflix stock now.
Image source: Getty Images.
Too much is never enough
Netflix has long said that a continuing stream of high-quality new and original content is the key to its success, essentially providing programming to suit every viewing taste. Netflix isn’t taking its foot off the pedal in terms of production, either.
During the fourth quarter of 2021 alone, Netflix debuted 835 episodes of content, up more than 50% year over year and more than the next four services combined, according to an analysis by MoffettNathanson. To put those numbers in context, AT&T‘s (NYSE:T) HBO Max comes in a distant second place at 302 episodes. Other well-heeled competitors also lagged behind. Amazon‘s (NASDAQ:AMZN) Prime Video, Disney (NYSE:DIS)-controlled Hulu, and Disney+ rounded out the top five, with 248, 148, and 98 episodes, respectively.
And the Emmy goes to…
This strategy is bearing fruit. In 2021, Netflix came away with 44 Emmys, the most-ever awards for a single network or service. The Crown took best drama series, while The Queen’s Gambit won 11 awards out of 18 nominations.
Netflix closed out the year with a bang, with the return of a host of fan-favorite programs such as The Witcher, Tiger King, and Cobra Kai, as well as the final chapter of La Casa de Papel (aka Money Heist). The company also released a number of big-budget, feature-length movies, including Red Notice, Don’t Look Up, and The Harder They Fall. Red Notice was such a huge hit on the platform, it prompted Netflix to order back-to-back sequels — a rare move for the streaming giant.
In October, Netflix revealed that Squid Game, its original program from Korea, had become the company’s biggest TV show ever. 142 million member households watched the show in the first four weeks after its release.
The success and wide-ranging appeal of Netflix’s original content will no doubt continue to drive subscriber gains and prevent defections.
Image source: Getty Images.
Programming drives financial results
Netflix is the…