Netflix, Inc. (NASDAQ: NFLX) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company reported its financial results for the third quarter, blowing expectations out of the water. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The financial results;
- what we’re seeing from NFLX stock as a result; and
- what we’ll be watching for ahead.
NFLX Is Climbing On Q3 Results
As mentioned above, Netflix is having an incredibly strong start to the trading session after announcing positive Q3 results. Here’s what we saw from the earnings report:
- User Growth – User growth proved to be the big hit for NFLX in the third quarter. During the quarter, analysts expected that the company would add just over 5 million new users to the platform. However, the company actually added 6.96 million, with 5.87 million users coming from overseas. Of course, this suggests that growth overseas will offset any issues with subscriber growth here in the United States.
- Revenue – In terms of revenue, the company performed right in line with analyst expectations. During the quarter, the company generated revenue of $4 billion.
- Earnings – Earnings proved to be a big hit. During the quarter, the company announced that it generated earnings in the amount of $0.89 per share. Analysts expected that NFLX would generate earnings of $0.68 per share.
Following the overwhelmingly strong earnings report, various analysts increased their price targets for the stock. Some of the most notable price target increases came from Morgan Stanley, J.P. Morgan, Raymond James, and Canaccord Genuity.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Netflix, the news proved to be overwhelmingly positive. After all, strong earnings was great news and the strong subscriber growth was an incredibly positive surprise. So, it comes as no surprise that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (7:56), NFLX is trading at $382.50 per share after a gain of $36.10 per share or 10.42% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NFLX. In particular, we’re interested in following the story surrounding the company’s continued growth as it seems to be smashing expectations at the moment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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