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2 Stocks Benefiting From Squid Game's Success

By Jose Najarro – Oct 4, 2021 at 10:00AM

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You could probably guess the first one, but the second is a gaming company.

Squid Game is a South Korean drama television series enjoying tremendous success on Netflix (NFLX -2.44%). This success has driven Roblox (RBLX -8.09%) game creators to create numerous gaming experiences mimicking Squid Game. Today's video focuses on how a successful TV series like this can affect numerous stocks. Here are some highlights from the video:

  1. A streaming service needs only one popular hit series to drive new subscribers to its platform. Netflix saw massive subscriber growth in 2020 due to lockdown restrictions, which has caused a slowdown in 2021 compared to other years. Many investors believe that Squid Game and the numerous hit series appearing in the second half of the year can revive Netflix's subscriber growth.  
  2. When you look at the up-and-coming Roblox experiences, you will notice some resembling or even mimicking Squid Game. Investors should note how quickly a Roblox game creator can create an experience and take advantage of notable events. 
  3. Netflix's stock price has seen positive action in the past few weeks. A possible reason for the positive price action could be that investors are expecting Netflix to report strong subscriber growth in the upcoming quarters due to the popularity of series like Squid Game. If Netflix does not report strong subscriber growth, that could create bearish moves in its stock price. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closed prices of Oct. 1, 2021. The video was published on Oct. 2, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix and Roblox Corporation. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Netflix Stock Quote
$312.59 (-2.44%) $-7.82
Roblox Stock Quote
$31.24 (-8.09%) $-2.75

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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