{"id":115719,"date":"2024-10-18T22:41:54","date_gmt":"2024-10-18T15:41:54","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=115719"},"modified":"2024-10-18T22:41:54","modified_gmt":"2024-10-18T15:41:54","slug":"netflix-stock-surges-after-earnings-subscriber-growth-top-estimates","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=115719","title":{"rendered":"Netflix stock surges after earnings, subscriber growth top estimates"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Netflix (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/nflx\/?fr=sycsrp_catchall\" data-ylk=\"slk:NFLX;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">NFLX<\/a>) stock jumped more than 10% higher on Friday, pushing shares to a fresh record of around $760, after the streaming giant beat third quarter EPS and revenue estimates, and projected sales for the current quarter that came in ahead of Wall Street&#8217;s expectations.<\/p>\n<p>Revenue beat Bloomberg consensus estimates of $9.78 billion to hit $9.83 billion in Q3, Netflix reported after the market close on Thursday, an increase of 15% compared to the same period last year. The growth came as the streamer continued to lean on revenue initiatives like its<a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflixs-password-sharing-crackdown-officially-hits-us-users-183143562.html\" data-ylk=\"slk:crackdown on password sharing;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"> crackdown on password sharing<\/a> and<a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-stock-rises-after-ad-tier-reaches-15-million-monthly-active-users-151509322.html\" data-ylk=\"slk:ad-supported tier;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"> ad-supported tier<\/a>, in addition to<a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-cfo-says-company-has-long-runway-of-margin-growth-as-streamer-hikes-prices-234257141.html\" data-ylk=\"slk:last year's price hikes;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"> last year&#8217;s price hikes<\/a> on certain subscription plans.<\/p>\n<p>Netflix guided to fourth quarter revenue of $10.13 billion, a beat compared to consensus estimates of $10.01 billion.<\/p>\n<p>For full-year 2025, the company sees revenue hitting between $43 billion and $44 billion, compared to consensus estimates of $43.4 billion. This would represent growth of 11% to 13% from the company&#8217;s expected 2024 revenue guidance of $38.9 billion.<\/p>\n<p>It expects full-year operating margins to hit 27%, an increase from the previous 26%, after the metric hit nearly 30% in the third quarter.<\/p>\n<p>Diluted earnings per share (EPS) also beat estimates in the quarter, with the company reporting EPS of $5.40, above consensus expectations of $5.16 and well ahead of the $3.73 EPS figure it reported in the year-ago period. Netflix guided to fourth quarter EPS of $4.23, ahead of consensus calls for $3.90.<\/p>\n<p>Subscribers also came in strong with another 5 million-plus subscribers added on the heels of breakout programming like &#8220;The Perfect Couple&#8221; and &#8220;Nobody Wants This.&#8221;<\/p>\n<p>Subscriber additions of 5.07 million beat expectations of 4.5 million and <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-adds-8-million-subscribers-disappoints-on-revenue-outlook-213713615.html\" data-ylk=\"slk:follows the 8.05 million net additions;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">follows the 8.05 million net additions <\/a>the streamer added in the second quarter. The company had added 8.8 million paying users in Q3 2023.<\/p>\n<p>&#8220;We expect paid net additions to be higher in Q4 than in Q3\u201924 due to normal seasonality and a strong content slate,&#8221; the company said, citing upcoming releases like &#8220;Squid Game&#8221; Season 2, the Jake Paul vs. Mike Tyson fight, and <a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-strikes-three-season-nfl-deal-will-air-two-games-this-year-142733733.html\" data-ylk=\"slk:two NFL games on Christmas Day.;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">two NFL games on Christmas Day. <\/a><\/p>\n<p>Investors have praised the company&#8217;s foray<a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/this-nfl-season-is-about-to-show-how-fast-the-sports-tv-landscape-is-changing-142831168.html\" data-ylk=\"slk:into sports;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"> into sports<\/a> and live events. Meanwhile, its ad tier continues to gain traction, accounting for over 50% of sign-ups in the countries where it&#8217;s offered during the third quarter.<\/p>\n<p>&#8220;We continue to build our advertising business and improve our offering for advertisers,&#8221; the company said in the earnings release. &#8220;Ads membership was up 35% quarter on quarter, and our ad tech platform is on track to launch in Canada in Q4 and more broadly in 2025.&#8221;<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>Last quarter, <a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/about.netflix.com\/en\/news\/netflix-closes-successful-upfront-and-expands-advertiser-capabilities\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Netflix revealed;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Netflix revealed<\/a> it secured &#8220;a 150% plus increase in upfront ad sales commitments over 2023.&#8221; The company has <a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/s22.q4cdn.com\/959853165\/files\/doc_financials\/2023\/q4\/NEW-FINAL-Q4-23-Shareholder-Letter.pdf\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:previously said;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">previously said<\/a> its goal is to make ads &#8220;a more substantial revenue stream that contributes to sustained, healthy revenue growth in 2025 and beyond.&#8221;<\/p>\n<p>On the earnings call, Netflix co-CEO Greg Peters said that while ads won&#8217;t be a primary driver of revenue next year as &#8220;we&#8217;re still scaling that audience and that inventory faster than our ability to monetize it,&#8221; the company sees an &#8220;opportunity to close that gap.&#8221;<\/p>\n<p>Leading up to the results, Netflix&#8217;s stock had been on a tear, with shares up around 45% since the start of the year and <a data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-stock-secures-record-close-as-company-touts-ad-sales-ahead-of-nfl-wwe-debuts-200633869.html\" data-ylk=\"slk:trading near all-time highs;cpos:10;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">trading near all-time highs<\/a>.<\/p>\n<p>Analysts expect another price hike by the end of the year, which will likely serve as yet another catalyst for shares. But the stock&#8217;s recent run-up has led to some apprehension on Wall Street.<\/p>\n<h2 class=\"caas-jump-link-heading\" id=\"price-hike-to-come\"><strong>Price hike to come?<\/strong><\/h2>\n<p>The company recently revealed subscribers watched over 94 billion hours on the platform from January to June as part of its <a data-i13n=\"cpos:11;pos:1\" href=\"https:\/\/about.netflix.com\/en\/news\/what-we-watched-the-first-half-of-2024?utm_source=www.readthedailies.com&amp;utm_medium=newsletter&amp;utm_campaign=data-dump&amp;_bhlid=b23c0ae21c8ee5d8020bbbab48cfb1170cb1f215\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:latest biannual viewership report;cpos:11;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">latest biannual viewership report<\/a>, although year-over-year engagement levels came in roughly flat \u2014 <a data-i13n=\"cpos:12;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-stock-is-on-a-tear-but-its-big-challenge-is-making-sure-people-keep-watching-120058296.html\" data-ylk=\"slk:a potential headwind when it comes to pricing power;cpos:12;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">a potential headwind when it comes to pricing power<\/a>, which has become especially important for streaming companies as consumers become more picky.<\/p>\n<p>On average, US consumers subscribe to four streaming services and spend about $61 per month, according to the latest Digital Media Trends report from <a data-i13n=\"cpos:13;pos:1\" href=\"https:\/\/www2.deloitte.com\/us\/en\/insights\/industry\/technology\/digital-media-trends-consumption-habits-survey.html#streaming-video-at-a-crossroads\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Deloitte;cpos:13;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Deloitte<\/a>. Retaining loyal subscribers over time is a challenge due to consumers churning out of, or canceling, their subscription plans.<\/p>\n<p>Netflix last raised the price of its Standard plan<a data-i13n=\"cpos:14;pos:1\" href=\"https:\/\/variety.com\/2022\/digital\/news\/netflix-hikes-prices-us-canada-1235154777\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:in January 2022;cpos:14;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"> in January 2022<\/a>, upping the monthly cost to $15.49 from $13.99. It also raised the price of its Premium tier by $2 to $19.99 a month at the same time; the company again raised the cost of that plan<a data-i13n=\"cpos:15;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-subscribers-surge-as-company-announces-price-hikes-in-some-regions-200443637.html?fr=sycsrp_catchall\" data-ylk=\"slk:last October;cpos:15;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"> last October<\/a> to $22.99.<\/p>\n<p>The company has yet to raise the price of its <a data-i13n=\"cpos:16;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-ad-tier-debut-100241475.html\" data-ylk=\"slk:ad-supported offering;cpos:16;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">ad-supported offering<\/a>, introduced less than two years ago, which remains one of the cheapest ad plans among all of the major streaming players at $6.99 a month.<\/p>\n<p>&#8220;Given Netflix\u2019s low cost per viewed hour, we see scope for the firm to raise US prices by 12% in 2025,&#8221; Citi analyst Jason Bazinet said ahead of the report.<\/p>\n<p>The company recently <a data-i13n=\"cpos:17;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/netflix-is-getting-rid-of-its-cheapest-ad-free-plan-222645083.html\" data-ylk=\"slk:phased out its lowest-priced ad-free streaming plan;cpos:17;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">phased out its lowest-priced ad-free streaming plan<\/a>, making the $15.49 Standard plan its cheapest offering for an ad-free experience.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 640px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:67%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"Netflix stock is trading at all-time highs as investors eye price hikes as the next possible catalyst for shares. (Courtesy: Getty Images)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/5e9WYyVv44ecbc0NbiyG.g--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2022-05\/d8f49170-d51c-11ec-b763-fc1244449d42\"\/><img decoding=\"async\" alt=\"Netflix stock is trading at all-time highs as investors eye price hikes as the next possible catalyst for shares. (Courtesy: Getty Images)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/5e9WYyVv44ecbc0NbiyG.g--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2022-05\/d8f49170-d51c-11ec-b763-fc1244449d42\" class=\"caas-img\"\/><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Netflix stock is trading at all-time highs as investors eye price hikes as the next possible catalyst for shares. (Courtesy: Getty Images)<span class=\"caption-credit\"> (Wachiwit via Getty Images)<\/span><\/figcaption><\/p>\n<\/figure>\n<p><a data-i13n=\"cpos:18;pos:1\" href=\"https:\/\/www.yahoo.com\/author\/alexandra-canal\/\" data-ylk=\"slk:Alexandra Canal;cpos:18;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>Alexandra Canal<\/em><\/a><em> is a Senior Reporter at Yahoo Finance. Follow her on X <\/em><a data-i13n=\"cpos:19;pos:1\" href=\"https:\/\/twitter.com\/allie_canal\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:@allie_canal;cpos:19;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>@allie_canal<\/em><\/a><em>, <\/em><a data-i13n=\"cpos:20;pos:1\" href=\"https:\/\/www.linkedin.com\/in\/alexandra-canal-83643889\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:LinkedIn,;cpos:20;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>LinkedIn,<\/em><\/a><em> and email her at alexandra.canal@yahoofinance.com.<\/em><\/p>\n<p><a data-i13n=\"cpos:21;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/stock-market-news\/\" data-ylk=\"slk:Click here for the latest stock market news and in-depth analysis, including events that move stocks;cpos:21;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Click here for the latest stock market news and in-depth analysis, including events that move stocks<\/strong><\/a><\/p>\n<p><a data-i13n=\"cpos:22;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:22;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><strong>.<\/strong><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/netflix-stock-surges-after-earnings-subscriber-growth-top-estimates-133825544.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Netflix (NFLX) stock jumped more than 10% higher on Friday, pushing shares to a fresh record of around $760, after the streaming giant beat third quarter EPS and revenue estimates, &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=115719\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-115719","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/115719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=115719"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/115719\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=115719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=115719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=115719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}