Shares of Netflix jumped in after-hours trading Wednesday after the company reported profits and subscriber growth stronger than investors expected, along with a price increase. Netflix stock was recently up about 10% in the late session. The stock had fallen nearly 3% in regular trading. The company reported quarterly revenue of $8.54 billion, matching the Street's estimate. Management earlier this year told investors to expect revenue of $8.5 billion. It reported earnings per share of $3.
76 million net subscriber additions, ahead of the FactSet consensus of 6.1 million. Netflix in a letter to shareholders told investors to expect fourth-quarter revenue of $8.69 billion and earnings of $2.15 per share. Wall Street was looking for $8.72 billion and $2.17 per share, respectively. Netflix last year announced an ad-supported subscription option aimed at attracting consumers looking a lower-priced alternative to its other tiers.
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