Stranger Things Finale Drops - Will NFLX Stock Face the Upside Down?

Streaming giant's flagship series wraps as investors wonder what comes next

The Content Conundrum

Netflix just aired its cultural phenomenon's final episode, leaving shareholders staring at empty screens and emptier content pipelines. The streaming wars don't pause for nostalgia - while subscribers binge the conclusion, Wall Street's already asking what replaces this billion-dollar franchise.

Stock Reality Check

NFLX trades at premium multiples banking on perpetual hit-making machinery. Now the platform that taught us about the Upside Down faces its own reality inversion: spending billions to discover the next stranger thing while competing with studios pulling their IP back home. Because nothing says sustainable business model like hoping your next random production becomes a global phenomenon.

Original content costs keep climbing faster than Eleven's nosebleeds - but at least she got superpowers for her trouble.

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On Wednesday night, the platform experienced a brief outage as fans tuned in for the highly anticipated final season, causing streaming issues. However, service was quickly restored. Ahead of the release, NFLX stock was up by 1.7% on Wednesday.

What’s the Hype All About?

For context, Stranger Things is Netflix’s hit sci-fi show, blending supernatural thrills with 80s nostalgia. The series, which is Netflix’s third-most popular English-language show globally, has been a major moneymaker for Netflix over the past nine years. Since 2020, the show has generated at least $1 billion for Netflix, according to Parrot Analytics.

Notably, Season 5 premieres just in time for Thanksgiving, with more episodes scheduled for Christmas and the final one on New Year’s Eve.

But there’s risk too. Netflix reportedly spent up to $60 million per episode for this fifth season, totaling over $400 million, making it one of the most expensive TV productions ever.

What Lies Ahead for Investors?

Investors have often reacted to Netflix’s big content releases, for better or worse, and the Stranger Things finale is no exception. The big question now is whether this fandom-fueled final season can bring back old subscribers, attract new ones, and give NFLX stock the boost investors are hoping for, or is the HYPE already priced in?

In the short term, there’s reason for optimism. The final season could draw back fans who let their subscriptions lapse after Season 4, as well as new viewers who are just now curious about the show.

Sunny Bonnell, a brand expert and CEO of Motto Agency, says the show is “one of the few franchises that can still influence culture at scale.” She believes Netflix could see a big subscriber lift and possibly up to $200 million in revenue from Season 5 alone. She added that Stranger Things acts less “like a series and more like a brand,” which means its financial impact could extend well beyond the finale.

Experts also believe that, like Harry Potter or Star Wars, Stranger Things could become a franchise that generates billions over time.

Is Netflix a Good Stock to Buy?

Turning to Wall Street, NFLX stock carries a Strong Buy consensus rating. Among the 36 analysts covering the stock, 28 have issued Buy recommendations. Moreover, the average Netflix stock price target of $139.13 implies a 31% upside potential from current levels.

Year-to-date, NFLX stock gained 19%.