Netflix recently reported their earnings for the fourth quarter of 2021, and the results were better than expected. The streaming giant beat Wall Street’s revenue and subscriber growth expectations, causing their stock to surge in after-hours trading.
Analysts had predicted that Netflix would earn $7.67 billion in revenue for the quarter, but the company actually brought in $7.84 billion. This 12% increase in revenue was driven by a combination of higher subscription fees and an increase in the number of subscribers.
In terms of subscriber growth, Netflix added 8.3 million new subscribers in the fourth quarter, surpassing the 6.9 million that analysts had forecasted. This increase in subscribers was driven by strong international growth, particularly in Asia and Latin America.
Analysts are optimistic about Netflix’s future prospects, citing the company’s strong content pipeline and ability to attract and retain subscribers. They also point to the fact that Netflix has been able to raise prices without losing subscribers, a sign of the platform’s strong value proposition.
Netflix’s stock price jumped nearly 15% in after-hours trading following the earnings report, indicating that investors are pleased with the company’s performance. Analysts are expecting Netflix to continue to grow in the coming quarters, driven by a combination of new content releases and continued subscriber growth.
Overall, analysts are bullish on Netflix’s future prospects, citing the company’s strong performance in the fourth quarter and its ability to continue to attract and retain subscribers. With a strong content pipeline and a growing international presence, Netflix is well-positioned to continue its growth trajectory in the coming years.