Netflix’s Stock Surges 15% to Reach A New High of $988 Due to A Surge in Subscribers

Netflix stock zooms 15% to hit record high of $988 on subscriber growth boost

As markets started in New York, shares of the streaming behemoth surged up to 15% to reach a new high of $988, marking its most considerable intraday rise since October 2023.

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After a significant wager on sports helped attract a record 18.9 million members in the Christmas quarter, extending its considerable lead over other participants in the digital over-the-top (OTT) market, Netflix’s shares shot up 15% to a new high on Wednesday, January 22.

With more than 300 million subscribers worldwide, Netflix has a significant advantage in the streaming competition and more negotiating power with marketing companies as it seeks to expand its ad-supported business. Early trading saw the stock reach a record high of $988, opening the door for a possible stock split.

Due to the global start of the coronavirus pandemic, Netflix’s previous highest number of subscribers was 15 million in the first quarter of 2020. Following the jump in quarterly results on Wednesday, the new-age tech company had its most significant intraday gain since October 2023.

To increase income as it turns its attention from subscriber growth to other performance criteria like sales, Netflix also announced pricing increases on Tuesday in several territories, including the US.

If the increase continues, Netflix, now valued higher than the combined values of competitors Disney, Comcast, Paramount, and Warner Bros. Discovery, is expected to increase its market capitalization by over $50 billion to over $370 billion.

The launch of popular National Football League games on Christmas Day, which featured a halftime performance by pop sensation Beyonce, and Netflix’s foray into live sports, which included a boxing match between Jake Paul and Mike Tyson, were the main drivers of the company’s more than 80% share price increase last year.

In addition to becoming the most-streamed athletic event ever, the Tyson-Paul fight on November 15 attracted the most Netflix sign-ups of any event since Antenna began monitoring this data in 2019. The second season of “Squid Game” and the popular streaming film “Carry-On” were also part of its impressive programming lineup for the quarter.

Netflix will no longer release its quarterly subscriber count. Historically, the stock has fluctuated in response to new customers, but management is attempting to persuade investors to place more weight on financial indicators like profit and sales.

The US broadcast rights for the FIFA Women’s World Cups in 2027 and 2031 have already been acquired by Netflix. The streaming giant reported that sales will increase more quickly than anticipated in 2025, and its revenue increased 16% to $10.2 billion for the quarter, the most significant increase since late 2021.

Sales increased by 16%, although they were only around $100 million higher than anticipated, but the number of subscribers more than doubled. Netflix is expected to release new seasons of popular series, including “Stranger Things” and “Wednesday” in 2025. “WWE RAW” is already available for streaming.

By raising pricing in its home market, Netflix will increase sales. The most popular US plan will now cost $17.99 per month, up $2.50, as the business raises rates in the US, Canada, Portugal, and Argentina. Additionally, Netflix is raising the price of its less expensive ad-supported subscription.

The business anticipates $44.5 billion in sales for the year, a 14% increase over the previous year and an operating margin of 29%. As Netflix expands its advertising business, live content is essential. All of the company’s members, not only those on the less-priced, ad-supported tier, see advertisements during football and wrestling.

In the March quarter, Netflix expects earnings per share to be $10.4 billion, less than the average Wall Street projection. While many of its Hollywood competitors have reduced expenses and struggled to expand, Netflix has recovered from a brief downturn a few years ago to report record growth.

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