Netflix crosses $100B market cap on robust subscriber growth
Netflix Inc (NFLX) added more global subscribers than expected in the fourth quarter, as the video streaming service provider kept viewers hooked with critically acclaimed shows such as “The Crown” and “Stranger Things,” sending its shares up 7 percent in aftermarket trading to a record.
Netflix added 8.33 million total subscribers globally in the quarter. The company had forecast total subscriber additions of 6.3 million for the three months ended Dec. 31.
Analysts’ on an average were expecting subscriber additions of 6.39 million, according to data and analytics firm FactSet.
The company’s profit and revenue also rose in the quarter. The stellar results pushed its shares to an all-time high and gave Netflix a market capitalization of more than $100 billion for the first time.
Netflix has been pouring money into new original shows and acquiring the rights to other TV series to beef up its overseas presence and counter new rivals in the video streaming market.
The company signed up 6.36 million subscribers internationally and 1.98 million subscribers in the U.S. during the fourth quarter.
Netflix, which has chalked out a content budget of between $7.5 billion to $8 billion for 2018, faces intense competition from Amazon.com Inc’s (AMZN) Prime Video, Hulu and Walt Disney Co (DIS) which is launching its own online offering.
In October, Netflix raised prices for two of its three main subscription plans to help fund the substantial content investment.
Netflix also forecast subscriber additions of 6.35 million for the first quarter, above analysts’ expectations of 5.01 million, according to FactSet.
Netflix said revenue rose 32.6 percent to $3.29 billion in the quarter.
Net income rose to $185.52 million, or 41 cents per share, from $66.8 million, or 15 cents per share, a year earlier.
The Los Gatos, California-based company’s shares, which touched a record at $227.79 during regular trading on Monday, rose 7.3 at $244.30 percent after-hours.