Netflix is still the streaming K-I-N-G
The results are in… and they are quite good. Netflix gained close to 7 million new subscribers last quarter which is 2 million more than expected. With the latest results, Netflix now has more than 137 million subscribers worldwide. And with the subscriber growth came a 14% price hike in the company’s stock (hopefully you didn’t sell last week).
Netflix has the last laugh… because the stock plummeted with last quarters subscriber results…and then again, last week, with the rest of the tech stocks. CEO Reed Hastings chalked the second quarter up to “forecasting issues.” Also, in the future, the streaming giant plans to only account for those who pay for their Netflix account – not you ‘free trial’ freeloaders.
Another big plus… is that 6 million of the total new subscribers were from overseas. So what’s next? Well, the company plans to keep investing heavily in original content – somewhere between $8-13 billion in 2018. Netflix is hoping the massive cash investment will pay dividends in the future.