Netflix achieved a fun milestone now, traversing the $100 billion value for its market cap as it once again overwhelmed industry watchers with better-than-anticipated growth in Netflix subscribers. Netflix is now worth more than $100B.
We’ll get to the economic numbers in a moment but, as accustomed, the great story here is that it proceeds to wow Wall Street with a fantastic hike in its subscriber numbers. The company declared it totaled more than 8 million fresh subscribers after already getting pretty much extraordinary targets for the fourth quarter this year; providing it a good push as it forded the $100 billion mark after the release came out this afternoon.
Netflix’s greatest challenge has been to aggressively advance in good original content that’s going to draw in new subscribers. While its programs may pick up at several awards presentations like the Emmys; it still has to prove that it can turn those awards into new subscribers. But thankfulness to what seems to be lasting success with its original content like Stranger Things; as well other recurring seasons for programs like The Crown; it’s been prepared to continue its huge run.
Netflix is Now Worth More Than $100B
While the company’s core financials appeared in approximately in line with what Wall Street saw for (which is still essential), Netflix’s subscriber figures are normally the best pointer for the core constitution of the company. That recurring revenue stream — and its extension — is significant as it advances to very aggressively invest in new content. The company announced its free cash flow would be between negative $3 billion and negative $4 billion, matched with the negative $2 billion this year.
And that productive investment only appears to get more intrusive every time we hear from Netflix. The company is now stating that it anticipates spending between $7.5 billion and $8 billion on original content in 2018 — which is almost in line with what it told in October when it stated it would invest between $7 billion and $8 billion. It’s the exact range, but attuning up that bottom end is still an essential indicator.
Here’s the final slash line for the company’s report today; that says Netflix is now worth more than $100B.
- Revenue: $3.29 billion, compared to $3.28 billion estimates from Wall Street
- Earnings: 41 cents per share, in line with estimates from Wall Street
- Q4 US subscriber additions: 1.98 million
- Q4 International subscriber additions: 6.36 million
- Q1 forecast US additions: 1.45 million
- Q1 forecast international additions: 4.90 million