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Netflix (NFLX+10.30%) stock is booming on Wednesday, a day after the company reported blockbuster earnings bolstered by its largest increase of new paid subscribers ever.
The Los Gatos, California-based company’s stock popped more than 15% in pre-market trading on Wednesday, briefly sending shares to more than $1,000 a pop before gains were slightly pared back. Netflix stock is up 79% over the last 12 months.
Netflix on Tuesday said it finished 2024 with 302 million memberships, including a quarterly record of 19 million new paid members, with average revenue per membership in the U.S. and Canada totaling $17.20. It’s the last time that Netflix will publicly report paid memberships and average revenue per member.
Revenue climbed 16% year-over-year, driven by hits like “Squid Game” season 2 and “Carry-On,” which joined Netflix’s top 10 films. The fourth-quarter spike in viewership was also bolstered by major events, including the “Jake Paul vs. Mike Tyson” fight, which became Netflix’s “most-streamed sporting event ever.”
Christmas Day brought the most-streamed National Football League (NFL) games in Netflix history, pushing operating income up by 25%. Beyoncé’s “Beyoncé Bowl” also helped drive 50 million viewers.
The company expects revenue to reach between $43.5 billion and $44.5 billion, up $500 million from earlier projections. Additionally, it says it’s focusing on strengthening its core business by offering more popular content, improving the user experience, and expanding its ads business. The company also plans to get into new areas, such as live programming and gaming.
“We’re optimistic heading into the new year,” Netflix said, emphasizing its focus on creating content that continues to resonate with audiences and that will “pierce the cultural zeitgeist.”
As part of its plans, Netflix is raising prices for most plans across the U.S., Canada, Portugal, and Argentina. Its ad-supported plan will grow to $7.99 per month from $6.99 per month, while the standard ad-free plan will cost $17.99 a month, up from $15.49.
In 2025, Netflix is gearing up for the return of two major hits, “Stranger Things” and “Wednesday,” which may help it retain or gain subscribers. WWE’s “Monday Night Raw” also joined Netflix’s catalog earlier this month.