Netflix increased its number of subscribers to over 300 million – Share price on a strong rise

Streaming service Netflix exceeded analysts’ forecasts with its fourth quarter result. The company will report its results for October-December on Tuesday after Wall Street’s stock markets close.

The company said that its number of subscribers had increased to 302 million. During the quarter, the company gained 19 million new paying subscribers, which is a new record.

According to the company’s press release, good programs and the seasonal nature of the end of the year were behind the increase in the number of subscribers.

The company Squid Games 2 – favorite series is on its way to becoming the company’s most watched series of all time. The company’s sports broadcasts were also popular.

This year, the company plans to bring a new season of its favorite series to watch Strangers Things and Wednesday.

Netflix’s stock was up more than ten percent in after-hours trading at nearly $980, the highest value in the stock’s history. During the past 12 months, the company’s share price has increased by almost 80 percent.

Net sales increased by 16 percent to $10.25 billion from $8.8 billion in the year-ago comparison period. According to the forecast compiled by Factset, analysts expected a turnover of 10.1 billion dollars from the company.

Operating profit increased to 2.27 billion dollars. The forecast was 2.2 billion and the figure for the comparison period was 1.5 billion dollars. the result was boosted by advertising sales of $19 billion.

Adjusted earnings per share rose to $4.27, compared to a forecast of $4.21. In the comparison period, the figure was $2.11.

Guidance below analyst forecasts

Netflix advises that in the first quarter of this year the turnover will increase to 10.4 billion dollars. The company expects operating profit to be 2.9 billion and adjusted earnings per share to be 5.58 dollars.

In the analysts’ forecasts for the first quarter of the year before the announcement of the results, there was a turnover of 10.5 billion dollars and a profit of 5.96 dollars per share.

Information service Factsetin according to 40 analysts’ consensus recommendation for the company’s stock was “overweight” before the earnings release. The target price is $911.83.

The company expects 2025 revenue to grow between $43.5 billion and $44.5 billion, which is about $500 million more than previously expected.

The revenue for 2024 was 39 billion dollars and the operating result was 10.4 billion dollars.