Streaming giant Netflix (NFLX) produced one of the strongest performances on the NASDAQ exchange on Monday following the release of its Q2 earnings. The NFLX price ended the day more than 2% up despite having lost some of the gains made early in the day.
Netflix Price Rises Following Strong Results
The results confirmed $4.88 earnings per share. Revenue is at $9.56bn, ensuring that NFLX stays at the top of the streaming industry despite recent challenges that have affected the market since the end of the boom period of COVID restrictions when unprecedented growth was enjoyed. Both the figures were better than analysts had predicted.
Perhaps the most significant figure was the 8.05 million new subscribers joining the service in the quarter; according to analysts, that represents nearly double the total number of new customers that had been expected. Around half of the new subscribers chose the new ad-supported tier in those markets where it’s offered. The figures led to the company suggesting it’s getting close to the level needed to get major sponsors on board.
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While other streaming providers have turned to bundling to continue their growth in recent times, Netflix management said in a letter to shareholders:
We haven’t bundled Netflix solely with other streamers … because Netflix already operates as a go-to destination for entertainment thanks to the breadth and variety of our slate and superior product experience.
The letter continued by saying that any benefit to bundling with other streamers is limited due to their industry-leading penetration and engagement rates.
