As it gets ready to launch a new streaming service with advertising, Netflix Inc (NFLX.O) reassured Wall Street by reversing user losses that had hurt its stock this year and projecting stronger growth in the future.
In after-hours trading, Netflix shares increased 14%, helped in part by the streaming giant’s prediction that it would gain 4.5 million new subscribers in the fourth quarter. Before the quarterly announcement, the company’s stock, which was a darling among investors during its years of tremendous expansion, had decreased by about 60% this year.
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.