Netflix Stock Soars On Strength Of Foreign Subscriptions

Netflix had the kind of year in 2022 that only the ghoulishly morbid Wednesday Addams would love. But, now, in part due to a sagging dollar, the picture is getting brighter, Paul R. La Monica reported for CNN Business.

Photo Insert: As this year begins, Netflix is enjoying a solid rebound.

Netflix shares plunged more than 50% last year due to concerns about streaming subscription fatigue, increased competition from the likes of Disney, Apple, Amazon, Comcast’s Peacock, Paramount, and CNN and HBO owner Warner Bros. Discovery, along with questions about whether Netflix new advertising-supported option would help or hurt it.

But as this year begins, Netflix is enjoying a solid rebound. The stock is up about 10% already in 2023, a surge that’s grabbing Wall Street’s attention ahead of the streamer’s fourth-quarter earnings release next week.

One possible reason for the recent turnaround? The suddenly weaker dollar could be giving it a boost.

The US Dollar Index, which tracks the greenback versus the euro, yen, and several other leading global currencies, is down slightly this year and is off more than 10% from its 52-week high last September.

The US Dollar Index rose almost 10% in 2022, a historically large move in the normally stable world of foreign exchange. Netflix generated nearly 60% of its revenue from outside the United States in the third quarter.

So, anytime the dollar loses value, that boosts sales and earnings for a multinational company like Netflix once those international results are translated back into dollars.

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