Netflix posted earnings that blew past Wall Street expectations, sending its stock skyrocketing.
The company is continuing to invest heavily in new content, which in turn helps to keep driving subscriptions.
Netflix once again blew past Wall Street’s expectations on Monday, posting subscriber growth that trumped analysts’ expectations.
The streaming giant added a total of 8.34 million subscribers in the fourth quarter of 2017 — 2 million more than Wall Street was expecting, including a surprise increase in domestic consumers 34% higher than predicted.
“It was five years ago when we said we thought the market in the U.S. would be somewhere between 60 million and 90 million,” CEO Reed Hastings said on the company’s earnings call Monday. “We’re still only at 55 million.”
Morgan Stanley analyst Ben Swinburne estimated this month that Netflix’s current subscriber base is roughly equal to half of all US homes — a proportion that will only continue to grow.
Hastings attributes the enduring subscriber growth to word-of-mouth sharing as more customers rave about Netflix’s blockbuster originals. Of course, a marketing budget akin to that of a major Hollywood movie studio probably doesn’t hurt either.
“’Grace and Frankie’ launched its new season this week, which clearly reaches …read more
Source:: Businessinsider – Technology