Netflix Sees Growth in Subscribers and Earnings, but Stock Prices Decrease

Netflix had a successful first quarter, gaining 9.3 million new customers and reaching a total of nearly 720 million subscribers. Despite this, the company’s stock decreased by more than 4% in post-market trading on Wall Street. However, earnings per share for the period were $5.28, up from $2.88 the previous year, and revenue increased by 14.8% to almost $9.4 billion.

Operating profit also saw a significant increase, reaching $2.6 billion, up 54% annually. The introduction of new titles like “3 Body Problem” and “Griselda” contributed to this growth. Additionally, Netflix’s advertising option, which offers a lower-priced subscription, saw a 65% increase compared to the previous quarter, with 40% of new sign-ups choosing this option.

In its letter to shareholders, Netflix emphasized its commitment to quality content that appeals to a diverse audience and expanding its customer base. The company described its programming as ambitious and on a scale never seen before in the entertainment industry. Netflix highlighted its focus on building capabilities for advertisers as well as expanding its subscriber base