TOPLINE
Shares for Netflix rose by over 15% on Thursday, the largest single-day gain for the firm in nearly three years, after the streaming service reported growth that exceeded analyst expectations, and price increases.
KEY FACTS
Netflix shares rose by 15.92% to $401.30 as of Thursday morning, following a more than 10% jump to over $390 after the company released its third-quarter earnings report on Wednesday.
This is the largest single-day gain for Netflix since January 20, 2021, when shares rose by 16.86% to $586.34 after the company reported it had eclipsed the 200 million subscriber mark and announced it was considered stock buybacks.
Netflix added $8.54 billion in revenue and nine million net paid subscribers through a three-month period ending September 30, matching and exceeding estimates of $8.54 billion and 6.08 million, respectively.
A letter to shareholders on Wednesday also indicated Netflix was raising the price of its basic and premium plans to $11.99 and $22.99, up $3 and $2, respectively, as part of an effort to be competitive with other streaming services, including Amazon Prime Video, Disney+ and Paramount+.
Loading...
BIG NUMBER
247.2 million. That’s how many global paid subscribers Netflix has, according to its latest earnings report.
SURPRISING FACT
Prior to the nearly 17% single-day gain for Netflix in 2021, the previous high for the streaming firm was a gain of 16.8% on October 18, 2016. The increase followed an announcement from Wells Fargo, which upgraded its price target for Netflix shares to $700 per share, up from $510, adding to similar announcements from other analysts, according to CNBC.
Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up
By signing up, you accept and agree to our Terms of Service (including the class action waiver and arbitration provisions), and you acknowledge our Privacy Statement.
KEY BACKGROUND
Netflix reported earnings up to $3.73 a share on Wednesday, as chief executive Greg Peters said the firm was “incredibly pleased” with its recent growth, according to Bloomberg. Shares for the company have jumped by nearly 36% this year, and by just over 47% since October 2022. The stock crashed about 75% in the first half of 2022, after Netflix reported its first loss of subscribers in a decade. Netflix has continued to report subscriber growth, after announcing a crackdown on password sharing and a cheaper subscription tier that includes ads. The company also added a paid sharing option—requiring users to pay extra for accounts they share with others—that was called a “primary revenue accelerator in the year” by chief financial officer Spencer Neumann.
FURTHER READING
Netflix Hikes Prices For Some Plans As Subscriber Numbers Surge (Forbes)
Loading...