Squid Game Season 2 Stumbles – Netflix’s Squid Game Season 2 receives mixed reviews, causing sharp declines in related South Korean stocks. Learn about the market impact and what it means for the franchise’s future.
The highly anticipated second season of Netflix’s global hit Squid Game has made waves in the stock market, but not in the way investors hoped. As lukewarm reviews rolled in for the dystopian drama’s latest installment, shares of several South Korean companies associated with the show took a nosedive on Friday, December 27, 2024.
Market Meltdown| Squid Game Stocks Face Harsh Reality
The impact of the show’s reception was swift and severe
- Artist United Inc., where lead actor Lee Jung-jae is the largest shareholder, plummeted by the daily limit of 30%.
- Wysiwyg Studios Co., an investor in Artist United, saw a sharp decline of up to 25%.
- Dexter Studios Co., a Korean partner of Netflix, experienced a 24% drop.
This market reaction stands in stark contrast to the bullish sentiment that followed the first season’s runaway success in 2021, which had propelled many entertainment stocks to new heights.
Critical Reception| A Mixed Bag for Season 2
While Squid Game Season 2 has garnered an 85% approval rating from critics and 65% from viewers on Rotten Tomatoes, reviews from major publications have been less enthusiastic. The New York Times criticized the new season, stating that it hints at larger-scale ambitions but does little to pursue them, and describing the narrative as stalling.
Franchise Expansion and Investor Caution
Despite the current setback, Netflix continues to bet big on the Squid Game franchise. The streaming giant has invested in various spin-offs, including a reality TV show, video games, and immersive fan experiences. However, the market’s reaction to Season 2 serves as a stark reminder of the volatile nature of entertainment stocks.
As the dust settles on this initial market reaction, all eyes will be on the show’s performance in the coming weeks. The true test will be whether Squid Game can maintain its global appeal and translate that into sustained financial success for both Netflix and its Korean partners.
Also Read – Squid Game Season 2 Cast Reveals Most Challenging Games to Film
