In our morning panel discussion with Maria, we discuss Netflix and Tesla stocks, Big Tech's Q4 earnings, and the Fed's interest rate cuts.
Streaming giant Netflix The company's stock soared on Wednesday's trading day after its fourth-quarter earnings report after the bell on Tuesday significantly exceeded Wall Street's expectations for subscriber growth.
The company announced it added 13.1 million subscribers in the fourth quarter. This easily exceeded his predicted subscriber growth of 8.97 million. With these increases, Netflix recorded its largest ever increase in subscribers in the fourth quarter, bringing total subscribers to 260 million.
Netflix Increase in subscribers The streaming platform debuted when it aired the final season of the long-running royal drama “The Crown” and David Fincher's original film “The Killer.”
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Netflix announced strong subscriber growth in the fourth quarter, which boosted its stock price. (Tama Mario/Getty Images/Getty Images)
Netflix stock rose 8.3% in after-hours trading, and that increase continued into Wednesday trading, with shares up nearly 11% as of late afternoon ET. The stock price rose 65% during 2023.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | Netflix Co., Ltd. | 544.87 | +52.68 | +10.70% |
Revenue also increased to $8.8 billion, exceeding expectations and the company's guidance of $8.7 billion for the quarter. Revenue growth was about 12.5% year-over-year, thanks in part to a crackdown on password sharing and the addition of ad-supported subscription plans.
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Netflix wants to make advertising a major source of revenue by next year and plans to increase investment in its advertising business. (Rafael Enrique/SOPA Images/LightRocket via Getty Images/Getty Images)
Netflix said it expects double-digit revenue growth for the full year of 2024 due to subscriber growth and investment in its advertising business. The company said advertising is not yet the primary driver of revenue growth, but it aims to change that by next year.
Netflix intellectual property Earnings include the reality show “Squid Game: The Challenge,” based on the most-watched TV series, new original series like “All the Light We Cannot See,” and feature films like Zack Snyder’s “Rebels.” It became the driving force. Moon: A Child of Fire,” and non-English programs like the third season of the French series “Lupin.”
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Going forward, Netflix said it sees opportunities for growth as it continues to improve its programming and expand into new areas such as advertising and gaming. Although the gaming business is still relatively new, Netflix says user engagement has tripled.
Reuters contributed to this report.
