Netflix stock ( NYSE:NFLX ) rose substantially on Wednesday, jumping as much as 15.9%. The stock was still up 15.5% as of 10:37 a.m. ET.
The company’s financial reports, which included excellent news on numerous fronts, were the impetus that propelled the streaming pioneer higher.
So, what’s the deal with Netflix Stock?
Netflix announced positive subscriber growth in the third quarter, much to the pleasure of shareholders, following two straight quarters of decreases. Perhaps more crucially, it did it in grand style, with 2.4 million net additions, well surpassing its own projection – and Wall Street’s – of 1 million new customers. “Thank God, we’re done with declining quarters,” stated co-founder and co-CEO Reed Hastings on the earnings call.
Netflix’s revenue was $7.9 billion, a 5.9% increase yearly. Revenue increased by 13% when exchange rates were excluded. The company’s profits per share (EPS) of $3.10 were somewhat lower due to currency problems.
However, both figures are considerably above analysts’ forecasts, with sales of $7.8 billion and earnings per share of $2.14 expected.
So, what now?
Netflix executives went into extensive detail about the company’s planned ad-supported service. The “basic with advertisements” option will be available in 12 countries beginning Nov. 3 and will cost $6.99 per month. The...
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