Netflix Inc. witnessed one of the best years last year in history. The progress of the company was immense which resulted in skyrocketing revenues. Furthermore, the firm planned global expansion in order to achieve its objective to provide services to customers in every country by the end of this year.
Two weeks ago, Netflix launched in 130 countries simultaneously, including India, and became the first global TV network. All of this positively contributed towards its shares resulting in happy and satisfied investors and shareholders.
The streaming service is now closing in at another milestone, which is to reach the 75 million ‘paid’ subscribers mark. The things are going quite well for the most company. It is believed thatit is not only expanding globally and adding millions of global subscribers on its platform but also doing it at a quicker pace than investors and shareholders expected.
According to sources, it is said that Netflix reported revenues of $1.82 billion in the final three months of last year. It also reported earnings per share (EPS) of $0.10. The company successfully beat the estimates of the analysts at the Wall Street Journal who expected the earnings figure to be $0.02 per share.
Overall, Netflix stocks increased by 7% bringing the price up to $115 per share in afterhours trading market; this resulted in a year to date gain of 0.5% on the stocks. This is not a significant gain but still was enough for the company to list itself in the large cap tech stocks of this year.
Investors and shareholders of other tech giants are not very much satisfied with the performance regardless of the earnings the companies posted so far. Intel managed to surpass the analysts’ expectation but warned that its business could slow down in the upcoming months due to the declining demand for its chips.
It was known that the user growth was dying in the United States hence Netflix chose to expand globally. Sources suggest that the company addressable market will increase from last year’s 360 million broadband homes to 550 million broadband homes in the past one year. It could only add about 1.6 million new streaming subscribers in the United States.
Analysts and corporate management realized that the home market was approaching saturation hence expansion was necessary to keep the business going. It added nearly 5.9 million new global subscribers from the 130 countries where it expanded.