'More and more people subscribed to Netflix last quarter, what stories do you want to watch?'
Streaming giant, Netflix Inc saw a resurgence in the number of its user subscriptions through its corporate earnings report for the 3rd quarter (Q3).
Observing the results of the report, Netflix recorded 2.4 million new users in the period from July to September after recording a decrease of 1.2 million for the first half of 2022.
It marks the latest number of Netflix user subscriptions of 223.1 million and at the closing session yesterday the stock jumped 14%.
Chief Executive Officer (CEO), Reed Hasting commented that the company was relieved that the number of users for Q3 increased and expressed confidence in another surge in the coming quarter.
As a result, the company boldly set a forecast of 4.5 million users by the end of the year compared to Wall Street's forecast of only 4.2 million.
Also noted in the report was a jump in revenue that beat market expectations of $7.9 billion, a 6% increase from a year earlier while earnings rose $3.10 per share.
However, Netflix set a revenue forecast of $7.8 billion in the coming quarter as the strengthening dollar impacted consumers.
Meanwhile, Netflix expressed confidence that a streaming plan with ads at the $7 price tag will help the company compete with its rivals.
Hasting also said that in comparison, Netflix's annual operating profit can reach $5 to $6 billion while its competitors can reach an annual operating loss of $10 billion.
As of this writing, Netflix shares are seen down 1.73% at $240.86 with a market capitalization of $107.11 billion.
