Netflix has pulled a Nedd Brockman and proved everyone wrong by adding over 2.4 million subscribers last quarter.
👉 Background: For each of the last two quarters, Netflix has announced a falling subscriber count. So it's fair to say the odds were stacked against it coming into this earnings season.
👉 What happened: But Netflix has pulled a Nedd Brockman and managed to prove everyone wrong (minus the maggots). It added over 2.4 million subscribers last quarter and saw both its revenue and profit increased.
👉 What else: Let’s just say it owes a big thanks to shows like Stranger Things, The Gray Man and Purple Hearts. And investors sent the shares up by 14% after the good news on subscriber growth.
💡Sometimes it is best to build your business around the metrics that matter to investors. For Netflix, the key metric that investors care about is the growth of its subscribers.
💡Over the last two quarters, when subscriber growth has been net negative, the Netflix share price has been battered. But now, its back in net-positive territory.
💡That’s thanks to a cut-down in password sharing and better programming. And all this before the rollout of Netflix’s new ad-supported version, which could make Netflix around $3 billion USD in extra revenue by 2025.
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