Here's Why Netflix's Share Price Is Soaring

Here's Why Netflix's Share Price Is Soaring

Revenue for the period grew to $2.29 billion, versus $2.1 billion past year, beating the consensus view of $2.28 billion.

Netflix said it added more worldwide subscribers than expected in part because the impact of its original show and movie premieres was "greater than anticipated across many of our markets". Netflix's revenue was roughly in line with Wall Street forecasts.

The company, which had reported disappointing subscription growth for the last two quarters, forecast current-quarter subscriptions that blew past analysts' expectations.

Not only that, but Netflix also crushed Wall Street profit targets for the company. The company says it will generate more than 1,000 hours of "premium original programming" next year, up from 600 hours this year. It now has more than 86 million subscribers. "The regulatory environment for foreign digital content services in China has become challenging", the company wrote.

Next quarter, the company anticipates it will add 1.45 million new US subscribers and 3.75 million global subscribers, down a bit from past year due to churn from the "un-grandfathering" of subscribers with cheaper subscription plans.

Although Netflix was forecast to post a 31% jump in third-quarter revenue, to $2.28 billion, its profit was expected to slip to six cents a share from seven cents a year ago, according to a consensus of analysts polled by FactSet Research Systems Inc.

Netflix delivered 12 cents of earnings per share in the latest period, when analysts were expecting only half that.

Investors greeted today's report with a flurry of buying in Netflix shares, which rose $19.10 (+19.14%) in after-hours trading Monday to $118.90.

Despite a long line-up of popular shows like Narcos and Stranger Things, Netflix the company has been under some pressure-and so has its share price-primarily because of fears about what the future might hold. It's going to have to also figure out how to get the right local content available in those countries.

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