'The Squid Game' is a huge hit, but is it enough for Netflix?

What is the secret of the success of "The Squid Game"?

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(CNN) -

For much of this year, Netflix shares lagged behind big tech rivals Facebook, Apple and Amazon.

That's no longer the case, in part because of the worldwide mega-hit "The Squid Game."

Netflix shares were in the red during 2021 through August.

Investors were concerned that it had lost its charm as consumers turned to new streaming platforms such as Disney +, Amazon Prime Video, Apple TV +, Paramount +, Peacock and HBO Max, which is owned by WarnerMedia, the parent company of CNN.

But Netflix, which will present its third-quarter results on Tuesday, saw a big change in recent months as users became addicted to South Korea's "Squid Game."

The drama about game show contestants trying to survive dangerous competitions has generated great buzz - and viewers - for Netflix since its world premiere in September.

Netflix exclusively told CNN Business this month that 117 million accounts have watched the show since its debut.

Netflix shares are up 17% this year, better than Apple and Amazon, and roughly in line with Facebook's rise so far this year.

Shares of Alphabet, which owns Google, have soared 60% in 2021, making them the top performers in the FAANG group of elite tech stocks.

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Netflix also outperforms its traditional media rivals: Disney;

ViacomCBS, parent company of Paramount +;

Peacock from Comcast;

and the owner of WarnerMedia, AT&T.

• Exclusive: 'The Squid Game' Is Netflix's "Biggest Ever" Release

Netflix subscribers, the point that investors will watch the most

The question Wall Street is asking, however, is whether "The Squid Game" will lead to even greater financial success for Netflix.

Analysts expect third-quarter revenue to rise 17% from a year ago, to $ 7.5 billion, and net income to skyrocket 47% to $ 1.2 billion, or $ 1.2 billion. 2.56 per share, as forecast by data provider Refinitiv.

But the figure that investors will watch most closely is the number of Netflix subscribers.

The main reason Netflix shares stalled earlier in the year was concerns about slowing user growth.

Wall Street estimates that Netflix added about 4 million subscribers in the third quarter, for a total of 213.3 million worldwide.

The orientation of the company will also be key.

Analysts forecast an even greater increase in users in the fourth quarter: an increase of more than 8 million, to 221.4 million.

Netflix shares typically rise or fall after quarterly results due to the expectations of the company's subscribers.

And there may be added pressure for the company to offer a bullish outlook.

This is because many analysts are very optimistic about Netflix's stock.

Of the 45 who cover the company, 33 have buy ratings on the stock.

If Netflix's expectations disappoint, stocks could suffer a fate almost as violent as the unfortunate losers of "The Squid Game."

The Squid Game Netflix