Streaming giant Netflix (NFLX, Financial) saw its stock price rise by 11% to $763.89, reaching a market capitalization of $327.835 billion. The company outperformed Wall Street's expectations in the third quarter by adding over 5 million new subscribers and exceeding every major financial metric, sending its stock to a record high.
In a recent shareholder letter, Netflix reported a 15% increase in sales, amounting to $9.83 billion, with earnings per share rising to $5.40. Analysts had anticipated a subscriber increase of 4.52 million. The stock's intraday volatility marked the largest swing since January. Since May 2022, Netflix's stock price has more than tripled following a significant sell-off due to slowed growth and investor concerns over its entertainment business.
Since then, Netflix has successfully added over 60 million subscribers by curbing password sharing and introducing a lower-priced, ad-supported subscription tier. By the end of the quarter, Netflix boasted 282.7 million users.
Co-CEO Ted Sarandos expressed optimism about the business performance during a conference call with analysts, highlighting a plan to reaccelerate growth, which the company has successfully executed.
