NFLX: Netflix Stock Jumps 5% as Streamer Picks Up 5M New Users, Posts Record Profit

Streaming platform topped Wall Street expectations for earnings and revenue and one-upped with higher-than-expected revenue guidance.

• Netflix stock NFLX jumped 5% after hours following the company’s better-than-expected earnings report. “Streaming wars? What streaming wars?”, Netflix, probably, after it released its third-quarter results. Netflix cemented its position as the undisputed champion in streaming as it pulled in 5.1 million new subscribers across its tiers with the biggest leap — 35% year-over-year — in the ad-supported membership.
• Numbers time: Netflix picked up $5.40 in earnings per share against $5.12 expected by analysts. Profit arrived at a record of $2.4 billion, up a whopping 41% from last year. Revenue for the September quarter landed at $9.8 billion, up 15% from last year and slightly ahead of expectations. Shares of the streaming platform gear up to open at a record high of $722 per share and are up 46% on the year, valuing the company at more than $300 billion.
• The good things don’t end there. In a letter to shareholders, Netflix said: “We’ve delivered on our plan to reaccelerate our business, and we’re excited to finish the year strong with a great Q4 slate.” It now guides Q4 revenue to $10.13 billion, above analyst estimates of $10.04 billion. For the full year of 2024, Netflix eyes revenue growth of 15% and an operating margin of 27%. Starting Q1 2025, Netflix won’t be releasing subscriber growth as it shifts investor focus to revenue and profit.