Why the Rally in Netflix Stock is Just Getting Started

Content streaming stocks were rocked last year, with industry leader Netflix (NFLX) nosediving around 75% from peak to trough. Undoubtedly, the streamers weren't the only group of tech-oriented plays that were punished severely as the reality of higher interest rates set in. Fintech firms also suffered quite the devastating hit to the chin, with many once-loved stocks, like Block (SQ) and PayPal (PYPL), still a long way off from their highs. But unlike the fallen fintech stocks, I do think the streamers can pick themselves up off the canvas as the industry continues its evolution.

Of course, the economics of the streaming business do not seem nearly as impressive as they used to. During Netflix's glory days, streaming used to be the hot place to be in tech. Nowadays, streaming is just the new norm. It's not innovative anymore. Arguably, it hasn't been for more than a decade! Still, media companies have been forced to get into the streaming game or risk going the way of the dodo bird. Unfortunately for legacy media companies eager to catch up to the likes of Netflix, the move into streaming has been anything but lucrative. It's been a necessary shift, but a very expensive one.