2.4 Million Reasons to Like Netflix Stock
In the third quarter (ended Sept. 30), Netflix (NASDAQ: NFLX) posted revenue of $7.9 billion and diluted earnings per share of $3.10, both beating Wall Street analyst estimates. And the stock immediately popped 14% following the news after the market closed on Tuesday, Oct. 18.
But boosting investor sentiment even more is that in Q3 the streaming leader added 2.4 million new subscribers, which exceeded management's internal forecast of adding 1 million. And that's good reason for investors to consider adding the beaten-down growth stock to their portfolios. Let's look more closely.
Netflix's recent financial release was welcome news for shareholders after the business lost 200,000 and 1 million subscribers, respectively, in the first and second quarters of this year. Management mainly blamed the softening macroeconomic environment, as well as heightened competition for viewers' eyeballs, as key reasons for the weak start to 2022.
Source Fool.com
