Netflix Inc reversed customer losses that had hammered its stock this year and projected more growth ahead, reassuring Wall Street as it prepares to offer a new streaming option with advertising.
Shares of Netflix jumped 14% in after-hours trading, boosted in part by the streaming giant’s forecast that it would pick up 4.5 million customers in the fourth quarter. The company’s stock, an investor favorite during its years of rapid growth, had fallen nearly 60% this year before the earnings report.
“Thank God we’re done with shrinking quarters,” said Co-CEO Reed Hastings, adding the company needs to continue gathering momentum by focusing on content, marketing and a lower-priced plan with advertising.
From July through September, Netflix attracted 2.4 million new subscribers worldwide, more than double what Wall Street expected.
“Netflix’s impressive numbers show the company’s growth story is far from over,” said Investing.com analyst Haris Anwar.
During the quarter, Netflix released the final episodes of season four of sci-fi hit “Stranger Things,” plus serial-killer series “Dahmer – Monster: The Jeffrey Dahmer Story,” which became one of Netflix’s most-watched series of all time. Reuters