More eyes will turn to the video streaming giant and its performance in the stock market.
Netflix shares proved to be a solid powerhouse not just in television but also in the stock market as the top streaming company plotted a new record high on Wednesday, boosted by its stronger-than-expected fourth-quarter earnings and growth in subscribers.
The stock registered an 8% surge in post-hours trading to $144.80, before falling back at $133.36 at the close on a jump of 0.28% on yesterday’s session, following the fresh $135.40 intraday high hit last Tuesday.
This rally by Netflix was driven mainly by the robust earnings in the fourth quarter of 2016, which impressed most of its investors, as the company logged a net income of $67 million with adjusted earnings 15 cents, blasting analysts’ forecast of just $58 million net income and 13 cents earnings.
The California-based TV streamer added a whopping 5.8 million paying members in a period from October to December but what is more surprising was it captured 93.8 million streaming subscribers in the previous year, a one step forward in its journey to dominate worldwide television, credit the high ratings from its original shows including Gilmore Girls and The Crown.
The giant-streaming firm has been dominating the market as the Netflix shares have jumped 34% over the last six months and have tallied a 28% gain in the 12 month period, surpassing the broader S&P 500 index, which only recorded a nearly 21% gain during the same time span.