Netflix had few good days on the stock market in recent months, but it looks like things have started to trend in the positive direction for the shares of the streaming service giant. Netflix stock (NFLX) surged 8% in extended trading on Tuesday after the company shared some positives in its fiscal second-quarter earnings.
While Netflix missed on revenue, raking in $7.97 billion versus $8.05 billion expected, it reported $3.20 in adjusted earnings per share (EPS) compared to $2.98 expected. However, the thing that probably benefited the company’s shares the most was the lower-than-expected loss of subscribers. It was expected that the streamer would lose around two million customers; the number came at a sustainable 970,000.
Netflix stock closed at $201.63 on Tuesday, which already represented a gain of 5.61% compared to the day before. But after the Q2 made the rounds, Netflix shares jumped another 8 percent in extended trading to reach a figure of $218.60 per share. This is the highest they have been since late April.
Netflix already saw some positives last week when it unveiled a partnership with Microsoft for its ad-supported plan. The company is expected to introduce this subscription option later in 2023 as a way to attract more subscribers with a lower price and boost its revenue.