Shares of Netflix (NASDAQ:NFLX) have been on fire since mid-August. During that stretch, Netflix stock has rallied from $315 to nearly $390.
Also during that stretch, Netflix has released a plethora of original content hits. It all started with To All The Boys I’ve Loved Before on Aug. 17, which was the same day Netflix stock bottomed. Then, the original content just started pouring in.
Over the next month and a half, Netflix launched content from shows Atypical, The Good Cop, Maniac, Nappily Ever After, BoJack Horseman, and more.
Make no mistake about it. The sum of all this original content is the fuel behind the recent rally in Netflix stock.
This has been a trend for some time. As goes Netflix’s original content, so goes Netflix stock. It all started three summers ago when Netflix stock broke out of its slump thanks to the first season Stranger Things, the science fiction hit that sparked unprecedented subscriber growth and proved that Netflix’s original content investment was paying off.
Strong original content has coincided with robust subscriber growth ever since, and Netflix hasn’t looked back.
Fortunately, this trend is only getting more favorable for Netflix. Looking out over the next twelve-plus months, Netflix’s original content line-up promises to be both quite good and quite diverse. This good and diverse content line-up will continue to drive robust subscriber growth, and robust subscriber growth will continue to power Netflix stock higher.
2018-19 Original Content Lineup Is Promising
In terms of projected quality and ostensible diversity, Netflix’s original content lineup for the rest of 2018 and 2019 is very strong.
Joe Rogan is releasing a stand-up comedy special in early October. Normally, I wouldn’t make much of this. But, this comedian’s fame skyrocketed recently when Tesla (NASDAQ:TSLA) CEO Elon Musk smoked marijuana and drank whiskey on a Joe Rogan show. As such, Netflix’s new Joe Rogan stand-up comedy could turn some heads.
Later in October, widely watched and highly rated adult animated series Big Mouth makes it second season debut, while even more widely watched and more highly rated Marvel series Daredevil makes its third season debut. Part two of surprise hit Making A Murderer also debuts on Netflix in October.
The November and December slates, while slightly less robust, promise to have some major hits. Season 6 of House of Cards
debuts in early November. Then, a week later, Chris Pine makes his headline Netflix original debut later in the Outlaw King, a biographical war movie about Robert the Bruce.
In December, Netflix will launch a four-part animated series based on beloved novel Watership Down, while also debuting an Ellen DeGeneres comedy special.
Moreover, Netflix’s 2019 original slate promises to be more robust and hit-heavy than the 2018 original slate. At the head of the list is The Irishman, a mob crime movie starring Robert De Niro and Al Pacino, and directed by the award-winning Martin Scorsese.
Other big 2019 films include Six Underground, which is directed by Michael Bay and stars Ryan Reynolds, and Dolemite Is My Name, starring Eddie Murphy.
On the TV show side, Netflix will combine new seasons of old shows and brand new shows to create its most robust annual series portfolio to date. New shows will include Sex Education, a coming-of-age high school series starring Emma Mackey, and Last Dance, an ESPN-Netflix partner series regarding the rise of Michael Jordan.
Netflix will also have new seasons from old favorites Stranger Things, Orange Is The New Black, 13 Reasons Why, Glow, Ozark, and The Crown.
Overall, from head to toe, Netflix’s 2018-19 original content line-up is very strong. You have big name actors like Chris Pine, Eddie Murphy, Robert De Niro, and Ryan Reynolds. You have big name directors like Martin Scorsese and Michael Bay.
There are animated films and series. There are documentaries, sports films, dramas, and biographies. You have brand new shows, and also new seasons of Netflix classics.
In sum, you have it all. That is a great thing for Netflix stock.
Bottom Line on NFLX Stock
At the end of the day, so long as Netflix’s original content remains the best in class in the entertainment world, you want to own Netflix stock. If Netflix continues to produce the best content, and continues to do so at an impressive rate, then consumers will continue to shift en masse from linear television to Netflix.
So long as this shift continues to favor Netflix, Netflix stock will head higher.
As of this writing, Luke Lango was long NFLX and TSLA.