Netflix (ticker: NFLX) stock surged 5.2% to close at $634.81 on Tuesday. The stock set an intraday record of $640.39, according to Dow Jones Market Data. It was Netflix’s largest daily percentage increase since Jan. 20, when it leapt nearly 17%. On Tuesday, Netflix stock outperformed the S&P 500 index ‘s 1.1% gain, and topped all of its FAANG peers by at least three percentage points.
After executives last week said the September launch of Korean-language survival thriller “Squid Game” could be one of the streaming service’s biggest original hits yet, news articles this week covered its viral success dominating discussion on apps such as TikTok and Twitter (TWTR).
It’s not just “Squid Game” that has analysts excited. In a note on Tuesday, Piper Sandler released results of a semiannual survey that included 10,000 teenagers in the U.S. The survey found Netflix led in streaming-media consumption with 32% of total daily viewing among the teens, followed by Alphabet ‘s (GOOGL) YouTube at 30%. Walt Disney ‘s (DIS) Hulu and Disney+ hit 8% and 7%, respectively, while AT&T ‘s (T) HBO Max was at 4%. Amazon . com’s (AMZN) Amazon Prime Video hit 3%.
Netflix is set to report fiscal-third-quarter results on Tuesday, Oct. 19, after the market closes. Analysts expect earnings of $2.55 a share on sales of $7.48 billion, according to FactSet. Analysts polled by FactSet forecast Netflix hit 3.8 million net subscriber adds in the quarter.
Investors will also be watching negotiations between the International Alliance of Theatrical Stage Employees and the Alliance of Motion Picture and Television Producers. The IATSE said its TV and film production members voted nearly unanimously to authorize a strike, and their demands include better pay for workers on streaming projects.
Write to Connor Smith at firstname.lastname@example.org