Netflix adds 7 million subscribers and stock jumps
Talk about giving the audience what it wants.
Netlix shares surged more than 11 percent after the online TV service reported crowd-pleasing quarterly results after the market closed on Tuesday. It added 6.96 million new subscribers, exceeding expectations and coming in particular relief after the company.
Netflix reported 1.09 million domestic subscriber additions, surpassing estimates of 673,800. And it brought in 5.87 million international subscribers, topping the 4.46 million estimate.
Netflix also reported revenue of $4 billion, in line with consensus estimates, and it issued an optimistic forecast for the current three months. This quarter, the streaming video giant expects to add 9.4 new subscribers globally, which would be its best quarterly addition ever.
The company, which started out in 1997 as a DVD-by-mail service, plans to spend about $8 billion on original programming this year.
Shares of Netflix have done well in 2018, up about 80 percent on the year even as other tech stocks have taken it on the chin this month amid weakness in so-called FAANG group: Facebook, Apple, Amazon, Netflix and Google.
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