Investing.com — Shares of South Korean companies associated with Netflix Inc.'s (NASDAQ:) series “Squid Game” saw a significant drop on Friday following the release of the show's new season. Artist United Inc., the film distributor where “Squid Game” actor Lee Jung-jae is the largest shareholder, saw its shares fall to a daily high of 30%. Wysiwyg Studios Co., also an investor in Artist United, saw a drop of up to 25%, and Dexter Studios Co., which collaborates with Netflix, saw a 24% drop in its share price.
The original release of “Squid Game” in 2021 was a monumental success globally, causing a surge in the stock prices of local entertainment companies. The series not only became Netflix's most-watched title across all continents, but also earned the distinction of being the first non-English language show to receive a Best Drama nomination at the Emmy Awards.
With the bar high, the anticipation for the second season of the dystopian drama was substantial. The new season, which premiered on December 26, earned an 85% approval rating from critics and 65% from viewers on Rotten Tomatoes, despite some unfavorable reviews.
The market reaction to the debut of the latest season stands in stark contrast to the initial enthusiasm that boosted entertainment stocks in South Korea two years ago. The success of the first season had fueled investor optimism about the potential benefits of Netflix's pursuit of additional blockbusters. However, the recent performance of related stocks indicates a change in sentiment following last season's reception.
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