Netflix shares rose 13% in late Tuesday trading after adding 8.51 million new customers in the final three months of the year, more than expected 6.06 million. According to Bloomberg, the growth was helped by the popularity of hit shows such as “Bridgerton” and “The Queen’s Gambit.”
- Overall, Netflix added 25.9 million customers in the first six months of last year and ended up with a record of 36.6 million in the year.
- Netflix’s record subscriber gains silence critics who argued the company would suffer if rival media companies pulled their most popular titles from the service and created their own competitors.
- Netflix has warned the surge in the first half of 2020, aided by stay-at-home trends during the pandemic, would limit growth in subsequent quarters.
- The company now projects 6 million new subscribers in the current quarter, below analysts’ estimate of 7.45 million.
- With $8.2 billion cash, Netflix said its cash flow would allow it to stop relying on debt to finance growth.
- Netflix is also considering stock buybacks for the first time in about a decade.
Netflix’s stock is currently gaining. NFLX: NASDAQ is up 12.30% on premarket