Netflix shares climbed nearly 14% in premarket trade on Thursday after the company reported strong subscriber growth in its third-quarter earnings report. The streaming giant added 8.8 million subscribers in the quarter, beating analyst expectations of 7.1 million. This is the company’s best quarterly performance since the second quarter of 2020.
Netflix’s subscriber growth was driven by a number of factors, including the release of popular new shows and movies like “Stranger Things” season 4, “The Umbrella Academy” season 3, and “The Gray Man.” The company also benefited from the launch of its new ad-supported subscription tier in November 2022.
Netflix’s strong subscriber growth is a positive sign for the company, which has been under pressure in recent months due to increased competition from other streaming services like Disney+, HBO Max, and Amazon Prime Video. The company’s stock price has fallen by more than 60% from its all-time high in November 2021.
However, Netflix’s earnings report also showed that the company is facing some challenges. The company’s revenue growth slowed to 5.9% in the third quarter, down from 16.3% in the same quarter a year ago. Netflix also said that it expects revenue growth to slow further in the fourth quarter.
Despite the challenges, Netflix remains the world’s leading streaming service with over 231 million subscribers. The company is also investing heavily in new content and international expansion. As a result, many analysts believe that Netflix is well-positioned to maintain its leadership position in the streaming market.
Netflix’s strong subscriber growth in the third quarter is a positive sign for the company, but it remains to be seen whether the company can sustain this growth in the long term. Netflix is facing increased competition from other streaming services, and its revenue growth is slowing. However, Netflix remains the world’s leading streaming service with a strong content library and a global reach.