Netflix up 15% on a blockbuster Q3: ‘it’s one of my favourite stocks’

Netflix Inc (NASDAQ: NFLX) jumped 15% in extended trading after the streaming giant pleased investors both in terms of subscriber number and the quarterly profit and revenue.

Netflix made up for subscriber losses

Netflix added 2.41 million subscribers in its recent quarter. That’s more than double the 1.1 million that Street had expected. In the prior two quarters combined, it had lost more than a million.

What’s more exciting, though, is the guidance. Netflix forecasts as much as 4.5 million new subscribers in Q4 versus analysts at 4.0 million. Discussing the earnings report on CNBC’s “Closing Bell: Overtime”, Shannon Saccocia – the Chief Investment Officer at SVP Private said:

Mark Mahaney’s take on the Netflix stock

Netflix is set to launch its cheaper ($6.99 a month), ad-supported tier on November 3^rd that’s expected to supercharge its subscriber and revenue growth. On a separate CNBC interview, Evercore’s Mark Mahaney said:

The media company is committed to cracking down on password sharing as well.

Notable figures in Netflix Q3 results

• Earned $1.4 billion versus the year-ago
• Per-share earnings slipped from $3.16 to $3.10
• Revenue climbed 6.0% year-on-year to $7.92 billion
• Consensus was $2.14 a share on $7.84 billion in sales

For the fiscal fourth quarter, Netflix is calling for $7.80 billion in revenue, as per the letter to shareholders. In comparison, experts had forecast $7.97 billion.