Iraq News - Local News - Baghdadpost

Netflix record subscriber growth dispels Wall Street worries

Netflix-logo-and-screen
Netflix Inc hooked 7 million new streaming subscribers from July to September, a third more than Wall Street had expected, reassuring investors who had worried the company was facing a slowdown in its fast-paced growth, Reuters reported.

The record number of additions in the third quarter brought Netflix’s customer base to 137 million worldwide, confirming its rank as by far the world’s biggest online subscription video service.

Netflix shares, already up about 78 percent so far this year, jumped 14 percent to $394.25 in after-hours trading, and boosted other high-tech stocks.

The leap in subscribers marked a sharp turnaround from three months ago, when investors sent Netflix shares tumbling 14 percent after it missed Wall Street’s subscriber growth targets.

“The question at the end of Q2 was whether that miss was an aberration or signs of a longer-term slowdown in the business,” said Forrester Research analyst Jim Nail. “The answer: an aberration, likely the results of a somewhat low volume of new content last quarter.”

Netflix’s results sent shares of Alphabet Inc, Facebook Inc and Amazon.com Inc up about 1 percent higher in extended trade. The four make up the so-called FANG group of high-growth companies that in recent months has lost some of its momentum following market-leading gains in recent years.
Read
Comments