Netflix Inc (NASDAQ:NFLX) proved Wall Street wrong after it achieved a better performance than it had forecasted. The number of this company’s paying subscribers rose, inspiring hope to investors at the brink of giving up.
These investors have been pushing the company to explain to them the plans it has in place to ensure that the number of subscribers doesn’t plunge further. These concerns arose at a time when there were reports about some new competitors moving into the market. These were Walt Disney (NYSE:DIS) and Apple Inc (NASDAQ:AAPL).
A close outlook into the company’s performance
The results for July through September shocked most of the investors. They say that they never expected such a rebound from the poor results obtained in the previous quarter. It was a low moment for the company after it missed out its goals for overseas subscribers for the first time in eight years. The after-hours trading was a relief for Netflix after its shares rose by 9.2% to $312.69 on Wednesday.
Investors had every reason to be worried, according to analysts. According to the analysts, the concerns in performance coupled with those of new competitors moving in, were enough cause for worry. These two factors weighed down on the company, which ended up reporting a 21% fall in performance from last year’s report.
Netflix optimistic despite the looming market dynamics
Netflix also spoke out regarding the factors that contributed to an impressive third quarter. It admits to having benefited a huge deal from its shows. Some of these shows include the “13 Reasons Why” and the “Stranger Things.”
Netflix was happy to showcase better results than had been projected by analysts. These analysts had made average projections which Netflix surpassed disapproving them in a big way. The analysts have congratulated the company saying that achieving the target of adding about 6.77 million paid customers wasn’t a joke. It must have taken the company a lot of dedication to get to such a point, according to them.
The management body of Netflix has spoken about the competition that will be pulling in soon. It expresses optimism saying that the company’s operating margin will keep moving higher. This is because the company will keep investing in the provision of top quality service delivery.