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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Netflix, the world's largest online video streaming service, has reached an all-time high in its stock price since going public in 2002, driven by significantly better-than-expected financial performance. On October 18, shares of Netflix rose by 11.09%, closing at $763.89 on the Nasdaq. This marks a remarkable 63.05% increase in stock value for the year, rebounding to nearly four times its value compared to May 2022, when concerns over growth led to a sharp decline following a surge in subscribers during the COVID-19 pandemic.
The surge in stock price is attributed to the company's impressive earnings report, which revealed that its subscriber count increased by 5.07 million in the third quarter, reaching 282.72 million. This figure slightly surpassed market expectations of 282.15 million. Additionally, Netflix reported third-quarter revenue of $9.825 billion and earnings per share (EPS) of $5.40, both exceeding Wall Street estimates of $9.77 billion and $5.12 per share, respectively.
Looking ahead, Netflix projects a 14.7% year-over-year increase in revenue for the fourth quarter, prompting positive evaluations from Wall Street. Bank of America has raised its price target for Netflix from $740 to $800, while JP Morgan increased its target from $750 to $850.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
