Netflix Shares Jump as the Company Surpasses the 100 Million Subscriber Milestone

Netflix on a flat screen TV

Netflix now has over 100 million subscribers, and its revenue soared

On July 17th, Netflix scored an unexpected surge of over 10 percent, exceeding the Wall Street predictions and overpassing the milestone of 100 million subscribers for the first time in its existence. Also, the company beat its previous record established last month after going up $16.82.

Sudden Wall Street surge for Netflix

As Netflix won so many subscribers lately, its shares surpassed all expectations and reached a surge of 10.3 percent in after hours trading. This helped them reach $178.55 on Wall Street, which is currently the highest they have ever achieved. Their previous record was attained last month, and was of $166.87.

The sudden jump occurred as the service reached 104 million subscribers. This is thanks to TV series such as House of Cards, Better Call Saul, The Crown, or the new show 13 Reasons Why. They brought 5.2 million new subscribers only during the second quarter of the year. This exceeded all expectations, as analysts had come up with a figure around 3.2 million. Usually, that period of the year is quite poor in the addition of new subscribers, and the streaming industry is not particularly profitable then.

More Netflix subscribers abroad than in the US

Also, the company surprised everybody on other fields as well. For instance, it gained a huge number of new viewers beyond the American borders. The forecast estimated it should gain around 2.59 million foreign subscribers. Again, it surpassed all expectations and reached 4.14 million. In the US, the company scored 1.07 million new users. This is also much higher than the 631,000 estimate.

Naturally, more subscribers led to a higher revenue. It scored an increase of 32 percent, reaching $2.8 billion only during the second quarter. This is huge, as the company got 60 percent more profit than in the past year. For the first time in its history, Netflix has more customers abroad than in the US, and this can only mean its revenue is going to grow.
Image Source: Flickr

Authors
Top