Netflix surpassed $100 billion market cap due to huge increase in subscribers

Netflix

The online streaming powerhouse gained 2 million more subscribers that exceeded Wall Street expectations in the later months of last year, multiplying profits threefold for the internet television service that is spending money on developing fresh programming to dominate the global online video streaming market.

The recent surge in subscribers pushed Netflix Inc (NFLX.O) to reach a market capitalization of over $100 billion for the first time. On Monday. Shares climbed 9 percent to record peaks of more than $248 during the after-hours of trading following its rally throughout the month and climbing 53 percent the previous year.

Netflix plans to spend billions on programming and establishing its customer base across 190 countries after signing up over half of all United States broadband households.

Through the months of October to December, the online video streaming giant snagged 6.3 million subscribers from global markets after the release of the latest seasons of its hit shows, “Stranger Things”, “The Crown” as well as the action movie “Bright” which stars Will Smith. This activity exceeded Wall Street forecast of 5.1 million, based on FactSet data.

Despite the price increase in October, Netflix ended the year with 117.58 million subscribers across the globe along with the 1.98 million American customers who recently subscribed.

According to BTIG analyst Richard, the company is currently allocating a huge amount of money to produce new content which clearly translates to more subscribers.

Netflix also stated that it acquired a $39 million non-cash charge for some of its unreleased content. Reports indicated that the charge was connected to actor Kevin Spacey, whom Netflix decided to cut ties with after he was accused of sexual misconduct.

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