Netflix Shares Jump 14% And Reverses Customer Losses

Netflix Inc successfully reversed customer losses that have been beating down its stock this year and estimated more growth in the future, offering assurance for Wall street as it has announced a new streaming option with advertisements.

Netflix shares rose by 14% in after-hours trading, which is amplified by their prediction of attracting 4.5 million customers by Q4. Netflix stocks have gone down approximately 60% this 2022 before the earnings report.

“Thank God we’re done with shrinking quarters,”  shared Reed Hastings, Co-CEO. He says that the company would still need momentum and focus more on marketing, a lower-priced plan with advertising, and content.

Netflix was able to gain 2.4 million new subscribers globally from July to September. This is twice the number that Wall Street predicted.

In this quarter, the last episodes of “Stranger Things” season four were released by Netflix and  “Dahmer – Monster: The Jeffrey Dahmer Story,” which quickly became one of the most-watched series of all time on the platform.

Netflix is looking to jump-start membership growth after a sharp decrease in the year’s first half. The streaming giant experienced a loss of 1.2 million subscribers in light of growing competition and an unstable global economy. In total, Netflix has 223.1 million subscribers around the globe.

Also in their quarterly letter to shareholders, Netflix has mentioned that other media companies continue to lose funds from streaming.

“Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard,” says the letter.

Source: Inquirer