It beat its third quarter estimates. It is enjoying very strong subscriber growth. Can Netflix do no wrong? Investors may not think so, given its massive trading session on the Nasdaq exchange seen on Thursday.
The OTT goliath, on volume of 27.33 million shares, saw its stock jump by 16.1% against average trading of 5.77 million shares to end the day at $401.77.
That puts NFLX back to a place it was last trading at in early September, and once again on track to reach a 1-year target estimate of $455.20 given to Netflix by 32 analysts who track the company’s activity.
Netflix saw its quarterly revenue come in at $8.54 billion, in line with Wall Street estimates. But, FactSet EPS estimates of $3.49 were easily surpassed, as Netflix reported earnings per share of $3.73.
The biggest takeaway? FactSet’s net subscriber addition estimate had been 6.1 million. In Q3, Netflix reported 8.76 million net subscriber additions, as password sharing crackdowns do not appear to be a detriment to the OTT giant.
Meanwhile, a price hike is coming to the U.S. for Netflix’s basic and premium plans ahead of the long-awaited finale of “Stranger Things.”
