Why Netflix Stock Jumped Back Over $400 Per Share Today

Shares of streaming-video service (NASDAQ: NFLX) jumped on Thursday after the company reported financial results for the third quarter of 2023. Investors seem to be cheering how many new subscribers joined the platform over the last three months in light of recent changes to its business model -- the changes appear to be working. And that's why Netflix stock was up 16% as of 10 a.m. ET, soaring past $400 per share.

During Q3, Netflix added nearly 8.8 million net new subscribers worldwide compared to the second quarter. The company hasn't had that many net new signups in years. During the past year, Netflix has prevented people from sharing passwords. And it's introduced lower-priced subscription tiers supported by advertising. Both moves seem to have stimulated subscriber growth, which is encouraging.

Among financial highlights in Q3, Netflix had an operating margin of 22.4%. This was higher than anticipated. And it had $1.9 billion in free cash flow for the quarter, which motivated management to increase its full-year guidance to $6.5 billion, up from $5 billion.

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Source Fool.com