*By Kavitha Shastry*
Shares of Netflix surged after hours Tuesday after the company said it added nearly 7 million subscribers in its latest quarter, well more than what analysts were expecting.
The video streaming service added 5.87 million users internationally and nearly 1.1 million in the U.S. ー the company had originally forecast additions of 4.35 million and about 650,000, respectively.
Netflix ($NFLX) stock was up more than 15 percent after the results, rising to its highest level since July before its last earnings report, when it posted subscriber growth that fell short of estimates.
Analysts were closely watching how the company would grow in the face of increased competition, not only from streaming "stalwarts" like Hulu and Amazon's ($AMZN) Prime Video, but also from traditional media and telecom companies such as Disney ($DIS) and AT&T ($T) that are looking to combat the cord-cutting trend.
In its letter to shareholders, Netflix confirmed its commitment to original content, highlighting the recently-announced production hub in Albuquerque, NM, where it plans to spend $1 billion a year.
The company, which has not been shy about its strategy to test out a slew of projects without worrying whether or not they succeed, said, "We strive to offer a wide breadth of programming because we want to maximize the size of our membership base." Evidence of that seems clear in the 676 hours of original content that debuted during the quarter ー more than double what it produced a year before.
Netflix reported revenue of nearly $4 billion for the quarter, in line with analyst estimates, and earnings of $0.89 a share, well above expectations for $0.68.
The company said it expected to add 9.4 million subscribers in the fourth quarter, 7.6 million internationally.
An independent watchdog within the IRS reports that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases. And National Taxpayer Advocate Erin Collins says those delays are “unconscionable.” Erin M. Collins said in the report released Wednesday that overall the 2024 filing season went smoothly, though IRS delays in resolving identity theft victim assistance cases are worsening. It took nearly 19 months to resolve self-reported identity theft cases as of January, and Wednesday's report states that now it takes 22 months to resolve these cases.
Amazon.com Inc. surpassed $2 trillion in market value for the first time in afternoon trading on Wednesday. The push higher for Amazon’s stock market valuation comes a little more than a week after Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia’s chips are used to power many AI application and its valuation has soared as a result. Amazon has also been making big investments in AI as global interest has grown in the technology. Most of the company’s focus has been on business-focused products.
