Shares of Netflix jumped in late trading after the streaming service reported better-than-expected user growth!
For the third quarter, Netflix added 2.4 million paying members world-wide. In July, the company had forecast 1 million adds.
The stock was recently up about 14% in after-hours action. The shares fell 1.7% in the regular session, closing at $240.86.
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Netflix Gains 2.4 Million New Subscribers, reversing negative trend
The company’s shares rose 14% in after-hours trading following the results. As of Tuesday, Netflix’s stock was down about 60% so far this year. pic.twitter.com/rPqrOQ3H54
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Netflix: adding over 2.4 new subscribers worldwide
For the current fourth quarter, Netflix expects 4.5 million additions; analysts surveyed by Factset were projecting 4 million.
The company doesn’t see its ad-supported plan, due in November, adding to its fourth-quarter numbers.“While we’re very optimistic about our new advertising business, we don’t expect a material contribution in Q4’22 as we’re launching our Basic with Ads plan intra-quarter and anticipate growing our membership in that plan gradually over time,” the company said Tuesday in its shareholder letter.
Netflix’s third-quarter revenue also beat its July forecast, but its fourth-quarter revenue outlook fell short of analysts’ expectations, which the company blamed on the stronger dollar. “The appreciation of the US dollar remains a significant headwind for us (and US-based multinationals in general),” Netflix wrote in its letter.