Netflix Stock Hits Record After Q3 Earnings

Netflix's stock soared to a record high after the company reported stronger-than-expected earnings for the third quarter, driven by a 15% revenue increase to $9.83 billion and the addition of 5.1 million new subscribers, surpassing estimates of 4.5 million. This growth is attributed to strategic changes like a crackdown on password sharing, the introduction of an ad-supported tier, and successful content releases. Netflix projected continued strong performance, expecting fourth-quarter revenue of $10.13 billion and further subscriber growth with the return of popular series like 'Squid Game'. Despite a slowdown in subscriber growth compared to last year, analysts remain optimistic about Netflix’s financial future, with plans to focus on ad sales and traditional financial metrics from 2025. The company's shares have risen significantly, contributing billions to its market value, although concerns about overvaluation persist.