Netflix Stock Hits Record High: Key Factors Behind the Surge

As we approach the end of 2024, all eyes are on Netflix, which has a track record of strong performance in December and January. This streaming powerhouse is no stranger to delivering impressive returns during this time of year, and this week, its stock hit a new all-time high of $915.97.

Recent market strength, following Donald Trump’s re-election, has contributed to the stock’s gains. Investors are optimistic about the potential boost in consumer spending under his pro-business, tax-cutting agenda, particularly in discretionary sectors like streaming.

In addition to these market trends, Netflix has hit a significant milestone with its ad-supported tier, attracting 70 million monthly users just two years after launch. The company has also seen a surge in subscribers in Japan, surpassing 10 million in early 2024. The popularity of Japanese-language content such as Tokyo Swindlers and anime has played a major role in this success, making anime its third-most-viewed non-English category globally.

Looking at historical data, Seasonax reports that Netflix typically posts an average two-month gain of 14.1% during this period, with a median return of 11%. Over the past two decades, the stock has closed this stretch positively 80% of the time. In its best December-January performance from 2012 to 2013, shares soared an impressive 117.42%. Even in unpredictable election years, Netflix has seen an average gain of 34.33%.

The holiday season tends to lead to increased binge-watching and subscriber engagement, which in turn boosts investor optimism about Netflix’s earnings as the new year kicks off.

For those interested in buying Netflix stock, you can typically do so through a brokerage account. Many platforms offer the option to purchase fractional shares, allowing you to own portions of stock without buying a full share. As of this writing, Netflix is trading at $911.06, and $100 would get you approximately 0.11 shares.

If you’re considering betting against the company, the process is more complex and usually involves options trading or short selling. This allows you to profit off a decline in the share price. It’s important to do thorough research and understand the risks involved in these trading strategies.

With Netflix hitting new highs and showing promising performance, it’s no wonder why it’s capturing the attention of investors as we head into the new year.