Good news for Netflix
Netflix gained 7 million new subscribers in July and September, a growth rate of 33% which surpasses Wall Street’s expectations. Investor confidence is growing as this proves that the company will continue to show significant growth in their service.
The company was able to maintain its title as the number 1 pay-TV service worldwide through the strong revenue it generated.
Shares of Netflix reached a 14% rise on hearing this news, reaching $394.25 (price per share), further boosting Netflix’s shares value.
This rapid increase in subscribers to the platform is a clear sign that things are not so bleak at Netflix. Investors expressed concerns that the situation would worsen and there would be a decline in revenue just 3 months ago. But now things seem to have turned around and investors are more optimistic.
Forrester Research analyst Jim Nail said: ”The question at the end of Q2 was whether this downturn was a passing blip or a sign of a long-term slowdown for the business. Ultimately with the announcement of this welcome event things seem to have gone in the right direction.”
This year Netflix invested more than $8 billion in entertainment programming to attract new customers around the world, as competition in the market is strong.
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Author: PC-GR
The World of Technology
