Netflix shares climb on good subscriber numbers
With net additions beating estimates, Netflix shares surged more than 14% after its third quarter numbers. Extended trade on the IG platform is showing a small retracement of what was the best day’s trade in 22 months.
(Video Transcript)
Netflix shares rise after Q3 earnings
The streaming giant Netflix saw shares rise in excess of 14% late last night on the IG platform after the company reported numbers that came through for the third quarter (Q3), which showed net subscriber additions, which really did help the numbers.
Let's just take a quick look at what we've got in terms of the figures themselves. Netflix posted earnings of 3.10 per share, almost a dollar more than expectations, with revenue reaching just shy of $8 billion, also beating forecasts.
The group said it added 2.41 million subscribers in the quarter. The market had anticipated a 1-million subscriber increase. Netflix now has a total of 223.1 million subscribers around the world.
Netflix chart
Now, in terms of moves on the chart, you can see if you look at what happened in this chart here with the gains that we saw late last night. But I wanted to talk about these two boxes, first of all this blue box. It was from the point before we saw COVID kick in back in 2020 and this 141% rise in the stock.
Then came the profit warnings. People decided they weren't going to pay for the streaming that they had enjoyed during the lockdown and decided to pull out. Since then, we've seen a rise in Netflix shares, the latest coming through with the company saying it wanted to initiate a new lower cost subscriber number at $6.99, - $7.99 is the cheapest Disney+ offering - it beats that, and we saw an uplift in shares in the last week or so.
You can see today's trade was down a little bit on the IG platform ahead of the US trading day today. But broadly speaking holding on to that near 14% rise that we saw in Netflix shares yesterday as a result of the earnings and the subscriber numbers out after the bell last night.
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