Netflix shares jump on better-than-forecast subscriber adds
The market didn't really care that Netflix earnings per share fell short of estimates.
The company said it added 13.1 million subscribers in the December quarter, its largest-ever fourth-quarter subscriber growth, exceeding projected gains of 8.97 million. That brings the total number of subscribers to 260 million. IG Angela Barnes has more.
(AI Video Summary)
Netflix's stock price
Netflix's stock price soared after the company gained a surprisingly large number of new subscribers in the last quarter of the year. They added 13.1 million subscribers, surpassing expectations. This means that Netflix now has a total of 250 million subscribers. While Netflix didn't earn its projected $2.21 per share, their revenue climbed to $8.83 billion, which exceeded forecasts.
WWE Raw deal
During a call with CSI, Spencer Newman, a representative from Netflix, shared that the company is expecting double-digit revenue growth by the year 2024. To achieve this, Netflix will be investing up to $17 billion on content this year, aiming to produce more exciting shows and movies. They are also diversifying their offerings by signing their first-ever live event deal with WWE Raw.
If we look at Netflix's stock performance, we can see that it's on a strong upward trend. Even before the Wall Street session opened, the stock had already gained 10.11% and had experienced a remarkable 65% increase throughout 2023.
Netflix increase in new subscribers
In simpler terms, Netflix has gained a lot of new subscribers, more than expected. While they didn't meet their projected earnings, their revenue was higher than anticipated. Netflix is confident that they will continue to grow, and they plan to invest a significant amount in creating more content, such as shows and movies. They are also expanding their offerings by partnering with WWE Raw for a live event. Overall, Netflix's stock has been performing well, showing a steady increase in value over time.
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