You will be redirected back to your article in seconds

Netflix stock rises by 22%

Hastings wins back investor confidence

Shares of Netflix soared by over 20% Thursday after the company reported upbeat quarterly numbers the day before and investors appear to be newly enamored despite significant challenges ahead that CEO and founder Reed Hastings acknowledged, including increased competition from Amazon.

The stock was trading up 22%, or $20 a share, at $116 in heavy volume. While Netflix is not likely to see anytime soon the $300-plus level the stock attained at its height, it has recovered significant ground from a 52-week low of $62 at the end of November.

Analysts at Citigroup, Barclays and JPMorgan Securities have raised their price targets for Netflix. Subscriber growth in the fourth quarter restored confidence in a renewed upward trajectory after stumbles in 2011’s third quarter led to a subscriber dip for the first time in the company’s history.

But the reaction to strategic flubs that angered customers may have been overplayed, just as the shares were likely overvalued at their previous sky-high level.

Netflix said it increased its domestic subscriber count by 610,000 in the fourth quarter. Revenue for the period surged 47% to $876 million. The company ended the year with 21.67 million domestic subs.

Looking ahead, Hastings noted the pending loss of Disney films that were part of Netflix’s deal with Starz that expired last year. Also, the exclusivity period of a five-year deal with Epix ends this fall, meaning those films could be licensed to competitors as well. But he said Netflix is flush with other content deals and will pursue new ones, although it may dial back spending a bit in coming quarters compared with its huge fourth-quarter outlay, which doubled from the year before.

More TV

  • China’s CGTN Boards ‘Drowning in Plastic’

    China’s CGTN Boards ‘Drowning in Plastic’ Documentary

    China Global Television Network, the English-language news channel that is part of China Central Television, has come on board high profile environmental documentary “Drowning in Plastic.” The show is represented by all3media international, and the agreement is the first between the two companies. CGTN comes on board as co-producer alongside Raw, and BBC One. The [...]

  • Operation Red Sea review

    Chinese Entertainment Industry Braces for a 'Cold Winter' in 2019

    Winter is here for the Chinese entertainment industry, a half-dozen top-tier industry professionals concurred in Beijing at the launch last week of Tencent Entertainment’s annual data-filled white paper. China’s box office hit new heights in 2018, raking in about $9 billion, but it was also a year of drastic regulatory changes and a government tax [...]

  • Cocain Grandmother Catherine Zeta Jones

    A+E Networks Sets Program Sales in Latin America and U.S.

    A+E Networks has clinched a raft of new programming sales to top TV outlets in Latin America and NBC’s Universo Spanish-language cabler in the U.S. On the eve of the annual NATPE programming market in Miami this week, A+E said it has set new licensing agreements for scripted and factual content with Direct TV (Latin [...]

  • Outlander 412

    'Outlander' Recap: Brianna Confronts Her Rapist in 'Providence'

    SPOILER ALERT: Do not read if you have not yet watched “Providence,” the 12th episode of “Outlander” Season 4. There were two competing narratives on “Outlander” this week — one that was largely invented for the show but was a very clever way to keep a certain character involved, and another that was also changed [...]

  • Gillian AndersonX-Files press conference, Century City,

    Gillian Anderson to Play Margaret Thatcher in Season 4 of 'The Crown' (Report)

    “The Crown” has found its Iron Lady. Gillian Anderson is said to have signed on to play British prime minister Margaret Thatcher in the fourth season of the much-praised Netflix drama series. Anderson’s casting was first reported by the Sunday Times. A Netflix rep declined to comment on the report. Anderson is the latest notable [...]

  • FICG Names Estrella Araiza As New

    Estrella Araiza To Head Up Guadalajara Intl Film Festival

    The Guadalajara Intl. Film Festival (FICG) has announced that Estrella Araiza, until now the festival’s head of industry and markets and director of the Guadalajara IntL. Film Festival in Los Angeles, has been promoted to the position of general director of the prominent Mexican festival. She replaces Ivan Trujillo, appointed director of TV UNAM. Araiza [...]

  • AGS2 Key Art, Image IDs: AGS2_081218_2727,

    Starz Releases 'American Gods' Season 2 Trailer (Watch)

    Starz has released a second season trailer for “American Gods,” which returns to the cabler Mar. 10, depicting the brewing war between Gods old and new in the series based on Neil Gaiman’s novel of the same name. “When people first came to America they brought us with them,” the trailer begins, flashing images of [...]

More From Our Brands

Access exclusive content