Netflix stock spikes after earnings beat
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Netflix's stock was up roughly 10% on Wednesday, after the company said it surpassed expectations for earnings per share and international subscriber growth, a key metric for the company because of saturation in the U.S.
Why it matters: This quarter's earnings are the last before the "streaming wars" really begin to pick up. Disney is expected to launch its subscription streaming service Disney+ on November 12th. AT&T and Comcast/NBCUniversal are slate to launch their respective streaming services next April.
Details: Netflix missed its own projections for domestic subscriber growth slightly, and it projected a lower number of subscriber additions for the following quarter than what investors were expecting.
By the numbers: per CNBC:
- Earnings per share: $1.47 vs. $1.04 expected, per Refinitiv estimates
- Revenue: $5.24 billion vs. 5.25 billion expected, per Refintiv
- Domestic paid subscriber additions: 517,000 vs. 802,000 expected, per FactSet estimates
- International paid subscriber additions: 6.26 million vs. 6.05 million expected, per FactSet
What's next: Netflix will hold a video Q&A presentation for investors at 6:00 pm ET.