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Netflix shares jumped as much as 18% on Thursday, adding roughly $28 billion of market value.
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The streaming giant posted an earnings report that met Wall Street’s expectations and announced a spike in subscriber numbers.
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Netflix also announced it would immediately raise prices for its basic and premium plans.
Netflix’s stock price gained sharply on Thursday, after the streaming giant announced a big jump in subscriber numbers.
Shares rose as much as 18%, creating $28 billion of additional market value for the streaming giant.
The gains came after Netflix logged earnings-per-share of $3.73 as part of its third-quarter report posted after-hours Wednesday, which beat the $3.49 figure that analysts polled by Refinitiv had forecast.
Its revenue of $8.54 billion for the three months ending September 30 was also in line with Wall Street’s expectations.
Netflix also said that it had added nearly 9 million subscribers for its best quarter since the start of the pandemic, which it attributed to its efforts to crack down on password sharing and the introduction of an ad-supported streaming plan.
“Subscribers were always going to be in the spotlight and what a bright light they’ve been, with 9 million new paying additions to the Netflix fan club following a crackdown on account sharing,” Hargreaves Lansdown lead equity analyst Sophie Lund-Yates said. “Blockbuster hits including Sex Education and The Witcher have helped attract and retain consumers with open wallets.”
The company’s big earnings beat came despite writers’ and actors’ union strikes shutting down production for much of the quarter. Two of Netflix’s biggest hits with subscribers were Japanese show “One Piece” and legal drama “Suits”, which it picked up the licensing rights to back in June.
Netflix’s share price was already up 17% year-to-date before Wednesday’s report.
Read the original article on Business Insider
