Netflix shares surge following the better-than-expected Q3 earnings
After well-known streaming giant reported the results for the third-quarter, Netflix shares jumped on Wednesday.
The shares of Netflix rose 8% on Wednesday after the company succeeded in beating analyst expectations. Although the domestic paid subscriber additions were below the expected amount, the company exceeded the expectations for the earnings per share. Apart from that, Netflix boasted a significant growth in international subscribers.
The Earnings per share was $1.47 which exceeded the expected amount of $1.04 as per Refinitiv estimates. Netflix reported a revenue of $5.24 billion which was slightly lower than the expected revenue of $5.25 billion as per Refintiv.
Netflix was able to add domestic paid subscribers of
517,000, although the expected domestic paid subscribers were 802,000 as per
FactSet estimates. And the company added 6.26 million international paid
subscriber additions versus 6.05 million expected, per FactSet.
In a letter to shareholders, Netflix stated: “Many are focused on the ‘streaming wars,’ but we’ve been competing with streamers (Amazon, YouTube, Hulu) as well as linear TV for over a decade,” the company said. “The upcoming arrival of services like Disney+, Apple TV+, HBO Max, and Peacock is increased competition, but we are all small compared to linear TV. While the new competitors have some great titles (especially catalog titles), none have the variety, diversity and quality of new original programming that we are producing around the world.”
(Reference: CNBC, The Motley Fool)
(Image source: Bloomberg News/Landov)