Netflix stock increased as much as 5% in after-hours trading on Thursday, as the streaming giant beat third-quarter earnings per share and revenue estimates and projected sales for the current quarter that has exceeded Wall Street’s expectations.
The approximate target price for NFLX stock was $729.53, around 2.6% higher than the current trading price.
Netflix lived up to its third-quarter results beyond the expectations of Wall Street in several categories, including an addition of 5.1 million subscribers from the earlier quarter.
The total revenue of Netflix of $9.825 billion surpassed the consensus expectation of analysts for $9.77 billion.
Its earnings per share of $5.40 beat the Wall Street forecasts of $5.12 and the total subscriber tally of 282.72 million overcame the prediction of 281.5 million, respectively.
Earlier, Bloomberg Consensus estimated Netflix’s revenue to hit $9.78 billion in Q3. At $9.83 billion, the OTT platform had an increase of 15% compared to the same period last year.
The streamer continues to rely on revenue-generating initiatives such as a crackdown on password-sharing and ad-supported tiers, alongside the last year’s price hikes on certain subscription plans.
Netflix has guided to fourth-quarter revenue of $10.13 billion, beating the compared consensus estimates of $10.01 billion.
For the entire year of 2025, the company sees its revenue hitting anything between $43 billion to $44 billion, as compared to consensus estimates of $43.4 billion.
This would demonstrate a growth of 11% to 13% from the company’s expected 2024 revenue guidance of $38.9 billion.
Of the 40 analysts covering Netflix stock, 23 have recommended “strong buy,” two recommend “moderate buy,” 13 recommended “hold,” while two recommend “strong sell.”
