Netflix share price today: Shares of global streaming giant Netflix soared 15 per cent to a record high on Wednesday, January 22, after big bet on sports helped add a record 18.9 million subscribers in the holiday quarter, expanding its sizeable advantage over other players in the digital OTT space.
Neflix's global subscriber base now exceeds 300 million, giving it a commanding lead in the streaming wars and more leverage in talks with marketing firms as it looks to grow its ad-supported business. The stock hit a record high of $988 during early trading, paving the way for a potential stock split.
Netflix's previous best in terms of subscriber growth was 15 million in the first quarter of 2020 — numbers driven by the onset of the coronavirus pandemic worldwide. The new-age tech stock hit its biggest intraday gain since October 2023 on Wednesday over the quarterly earnings boost.
Netflix also unveiled price hikes on Tuesday in markets including the US, aiming to boost revenue just as it shifts focus from subscriber growth to other performance metrics such as sales.
Netflix, already worth more than the combined valuations of rivals Disney, Comcast, Paramount and Warner Bros Discovery, was set to add more than $50 billion to its market capitalization of about $370 billion, if gains hold.
Shares soared more than 80 per cent last year, driven by Netflix's expansion into live sports with content including a boxing match between Jake Paul and Mike Tyson, as well as the debut of popular National Football League games on Christmas Day - which included a half-time performance from popstar Beyonce.
The November 15 Tyson-Paul bout was the most-streamed sporting event ever and drove the most sign-ups for Netflix for any event since Antenna started tracking this data in 2019. Its strong content slate in the quarter also included the second season of "Squid Game" and the hit streaming movie "Carry-On".
This is the final time Netflix will report its quarterly subscriber numbers. The stock has historically risen and fallen based on customer additions, but management is trying to get investors to prioritize financial metrics like sales and profit.
Netflix has already secured US broadcast rights for the 2027 and 2031 editions of FIFA Women's World Cups. The streaming major's revenue grew 16 per cent to $10.2 billion for the quarter, the biggest gain since late 2021, and said sales will grow faster than predicted in 2025.
Sales rose 16 per cent and were only around $100 million above estimates, while the subscriber growth was about twice the expected number. In 2025, Netflix is expected to show new seasons of highly popular shows such as "Stranger Things" and "Wednesday". It has already started streaming “WWE RAW.”
Netflix will boost sales by increasing prices in its home market. The company is raising prices in the US, Canada, Portugal and Argentina, with the most popular US plan going to $17.99 a month, an increase of $2.50. Netflix is also increasing the cost of its cheaper advertising-supported plan.
For the year, the company projects revenue of as much as $44.5 billion, a gain of 14 per cent from the year just ended, with an operating margin of 29 per cent. Live programming is vital as Netflix builds out its advertising business. The company shows advertising during football and wrestling to all of its members — not just those on the less-expensive, advertising-supported tier.
Netflix is forecasting revenue of $10.4 billion and earnings of $5.58 a share in the March quarter, below the average of Wall Street estimates. Netflix has rebounded from a brief downtown a couple of years ago to post record growth while many of its peers in Hollywood have cut costs and struggled to grow.
With inputs from Bloomberg and Reuters
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