Effect of Netflix & Competitor Releases on Stock Price, under the mentorship of Prof. Dr. Julius Vainora, Prof. of Economics at University of Cambridge
Objective & Methodology
This research focuses on a specific question: How do the popularity and buzz related to Netflix's content releases correlate with its stock price movements, and do these effects extend to competitors in the streaming industry? This exploration is meaningful as it could reveal unique drivers of stock price beyond conventional metrics. By comparing results with streaming giants like HBO and Amazon’s Prime Video, the study also aims to capture the broader impact of TV releases by rival firms on Netflix’s stock prices.
Tools Used
Gained proficiency in R, Autoregression, and k-Nearest Neighbors (kNN). Collected search volume and fan rating data, employed Ordinary Least Squares (OLS) regression model and lagged variable analysis, and produced a 36-page paper.
Findings
This research offers valuable insights into the interplay between Netflix's content popularity and its stock performance, extending the analysis to competitors in the streaming sector. While direct effects of content releases on stock returns are limited, broader market trends and macroeconomic factors play a dominant role. However, the popularity of Netflix shows at any given time, captured by the Total Demand variable, is notably significant in this study. These results underline the complex array of factors that influence stock performance within the dynamic streaming industry.
