Netflix crushes estimates, renewing faith after July letdown

Netflix crushes estimates, renewing faith after July letdown

The company hooked 7 million new streaming subscribers from July to September and for the current quarter, Netflix forecast it will add 1.8 million customers in the United States and 7.6 million in worldwide markets.

The Q3 results for Netflix came as a breather for its investors and the team after facing a slow down in the last quarter.

Tuesday is likely to be a hard day for Netflix investors as they brace themselves for the Q3 earnings report.

If the quarter's record-setting slate doesn't move the subscriber needle, Netflix may have to reassess its programming strategy.

The media giant's Q2 earnings report left shareholders shaken and stirred as Netflix's forecasts were off by 1 million subscribers, a discrepancy the company blamed on its own internal forecasting. Most of the company's subscriber growth came from overseas, with global users approaching 80 million.

After the incredible success of "Sacred Games", "Ghoul" and prior to that with a movie called "Love Per Square Foot", Netflix Inc has finally revealed its new plan to take on the might of Amazon Prime, Hotstar and Viacom 18's Voot. The four make up the so-called FANG group of high-growth companies that in recent months has lost some of its momentum following market-leading gains in recent years.

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Netflix held its quarterly earnings report earlier this week, recording a record high number of subscribers, which assuredly made investors happy. However, despite the unexpected cold shower last quarter, Netflix bulls remain confident the stock will rally.

The streaming company released a record 676 hours of original programming in the third quarter, according to Cowen & Co, the first time it has exceeded 500 hours in any quarter.

Overall, Wall Street continues to be enamored with the streaming service.

That helped lift profit more than threefold to 89 cents a share, beating the 68-cent average of analysts' estimates. Sales grew 34 per cent to US$4 billion, meeting Wall Street forecasts.

But the company continued to burn through cash to pay for its programming.

"More than 80 million accounts have watched one or more of the Summer of Love films globally and we are already in production for the next set of original rom-coms for our members", Hastings wrote. Disney and AT&T, the parent of Warner Bros. and HBO, are each looking to introduce new services next year - after completing takeovers of other companies worth a combined $160 billion. "The game is on".

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