Netflix’s market value topped $100 billion for the first time ever on Monday after the streaming giant’s fourth-quarter subscriber growth blew away Wall Street’s forecasts.
Shares of Netflix soared in after-hours trading following the company’s latest quarterly earnings report, rising nearly 10% to pull Netflix’s market capitalization north of $100 billion. Netflix had already finished trading on Monday at an all-time record close of $227.58, before approaching the $250-point mark in after-hours trading.
The stock jump came as investors celebrated Netflix’s report that the company added a total of 8.3 million new streaming subscribers in the fourth quarter of 2017, which easily outpaced the forecast of 6.3 million new streamers from Wall Street and Netflix itself. History has shown that investors typically judge Netflix’s earnings results based on how many new subscribers are added, with the company’s shares usually jumping when subscriber growth exceeds expectations and dipping when Netflix comes up short.
There had been some concern that Netflix’s recent price hike, which began to roll out during the most recent quarter, may turn off some customers and drag down the number of net subscriber additions. But that clearly was not the case, as Netflix’s letter …read more
Source:: Fortune.com – Tech