Why This Streaming Giant Could Be December’s Best Stock Pick, Backed by 20 Years of Data – Netflix (NASDAQ:NFLX)

As the year draws to a close, investors are looking for one last chance to make a profit in 2024.

The S&P 500 is up a strong 27% year-to-date, but some may feel they missed out on the gains – or even left money on the table with early moves earlier in the year.

While the broader market often experiences a Santa Claus rally, one stock in particular stands out for its incredible seasonality: Netflix Inc. NFLX.

If historical patterns hold, Netflix could be the perfect choice to buy in December and hold until the end of January.

Here’s why.

Stellar Seasonality: By The Numbers on Netflix

When Christmas songs fill the air, Netflix has a history of outperforming its S&P 500 peers.

Data from Seasonax shows the streaming giant gained an average of 14.1% from the start of December to the end of January, with an average return of 11%.

Over the last 20 years, Netflix has finished this two-month period in the green 80% of the time, or 16 out of 20 years.

Let’s break this down further:

• Average return in positive years: +24.98%
• Average loss in negative years: -20.64%
• Best performance: +117.42% (Dec. 2012 – Jan. 2013)
• Worst performance: -30.71% (Dec. 2021 – Jan. 2022)

To put this into perspective, Netflix has delivered double-digit returns 12 times during this period, making it a seasonal gem for traders looking to capitalize on recurring market patterns.

Here’s a snapshot of Netflix’s performance from early December to late January over the past 20 years:

Election Year Edge: A Netflix Special

Netflix’s year-end success is even more evident during US presidential election cycles. In the last five election years, the stock has never recorded a loss in the December-January period.

Instead, the company achieved an average return of 34.33% and a maximum return of 117.4% in the 2012-2013 cycle.

Here’s how Netflix performed in recent election years:

Also read: S&P 500 at 6,666 in 2025? Bank of America predicts “another good year for stocks”

Why Netflix is ​​the Christmas stock you can’t ignore

Whether it’s generating triple-digit gains in its best years or remaining largely resilient during down times, the streaming giant has proven to be a reliable performer for traders looking for opportunities as the year draws to a close.

Why does Netflix shine so brightly in December and January? Several factors could play a role:

• Binge watching on vacation: As people gather in front of the television during the holidays, Netflix tends to dominate consumers’ attention.
• Optimism for the new year: Investors often position for strong earnings results, which drives demand for high-growth stocks like Netflix.
• Seasonal market rally: The broader “Santa Claus Rally” typically provides a tailwind for stocks with positive sentiment.

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