Shares in streaming giant Netflix Inc. rose by as much as 14% to $393 in premarket trading on Thursday, putting them on course to their largest intraday rise in around a year. This comes after the company released strong financial results for the third quarter, including its strongest subscriber growth in years.
Netflix added 8.76 million customers in the third quarter, growing its subscriber base to 247.2 million and far exceeding analysts’ forecasts. The company is now on track to add over 20 million customers this year; a large increase from the nine million added in 2022. Revenue for the quarter rose 7.8% to $8.54 billion, while earnings were $3.73 per share.
Following its strong financial performance, Netflix has decided to raise prices in some key markets. This includes raising the price of its most expensive plan in the US by $3 to $23 and the basic plan by $2 to $12. Similar steps in the UK and France are set to follow.