Netflix Shares Surge 13% on Q3 Beat, Paid Net Additions Better Than Expected
<p><a href='https://financialmodelingprep.com/financial-summary/NFLX'>Netflix (NASDAQ:NFLX)</a> shares soar 13% yesterday following the company’s reported Q3 results, with EPS of $3.10 coming in better than the Street estimate of $2.18. Revenue was $7.93 billion, beating the Street estimate of $7.85 billion. Global streaming paid net additions came in at 2.4 million, compared to the expected 1 million.</p>
<p>For Q4, the company expects EPS to be $0.36, compared to the Street estimate of $1.12. Quarterly revenue is expected to be $7.776 billion, compared to the Street estimate of $7.97 billion. The company anticipates 4.5 million global streaming paid net additions in Q4.</p>
<p>Analysts at Oppenheimer raised their price target on the company’s shares to $365 from $325, reiterating their Outperform rating as subscriber trends appear to have bottomed ahead of ad-tier launch and crack-down on account sharing.</p>
<p>The analysts believe the launch of ad-tier and early advertiser demand is giving management confidence to crack down on approximately 100 million shared accounts in 2023. The analysts think pushing shared accounts to ad-tier (or paying more) will not only drive subscriber growth but also quickly create an ad-supported audience, as the company does not anticipate meaningful downgrading, holding back 4K support to ad-free.</p>

NASDAQ:NFLX