Netflix shares soar after resisting Hollywood strikes

He Streaming pioneer Netflix demonstrated its resilience, gaining more quarterly subscribers than in the last three years, despite strikes by Hollywood writers and actors, the company’s shares rose by 13.5% in transactions before the market opens on Thursday.

Netflix took advantage of its weight in global production, as well as the economic difficulties of its media competitors, to reach 247 million subscribers in the third quarter, an increase of nearly 9 million over the past three months.

Was biggest profit as the Covid-19 outbreak fueled unprecedented growth in early 2020.

Shares rose to $393.45, a sign the company could add almost 21 billion dollars its market capitalization.

“Management deserves an Emmy for managing investor expectations,” Bernstein analysts wrote in a note, adding that Netflix potential subscriber market more than expected.

Photo: Reuters

The results of media competitors such as Walt Disney, Paramount Global and Warner Bros. Discovery will show the impact of the months-long industry shutdown that began in May with Hollywood screenwriters’ strike.

U.S. television networks have filled their fall schedules with reruns and reality shows, while rival streaming services have delayed premieres and had fewer foreign-language programs than Netflix, which can produce more than 50 countries and languages.

“With its large international presence, Netflix is ​​better positioned than most entertainment companies to fill the programming gaps left by the writers’ and actors’ strikes,” said Ross Benes, senior analyst at Insider Intelligence.


Source: Aristegui Noticias