Neflix’s market crushing 2013, as told through five charts

December 12, 2013
December 12, 2013

It’s clearly been a remarkable year for Netflix shares.

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And it was largely driven by strong results released as part of quarterly earnings reports.

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But the metric that moved the shares wasn’t profits. It was subscriber growth for its online video stream services. They’ve been on a tear. In fact, in the US Netflix now has more video streaming subscribers than HBO has subscribers of any stripe.

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More traditional metrics also showed improvement during the year. Here’s a look at sales growth picking up steam.

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Profits have been rising, too. But they aren’t nearly substantial enough to justify Netflix’s $370 share price. That’s left Netflix with a steep price-to-earnings ratio—a basic way to measure if a stock is cheap or expensive when measured against a company’s earnings. A stock is typically considered fairly valued when its price is trading around 15 times earnings. Netflix is trading at 300 times earnings.

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