On Wednesday, stocks of Netflix Inc. wavered in the after-hours trading after it reported solid third-quarter 2021 earnings.
The internet television network lost 1.33% or 8.50 points to $630.50 per share.
Additionally, it opposed its Tuesday gain of 0.16% or 1.03 points to $639.00 per share.
Accordingly, Netflix’s earnings per share climbed to $3.19 from the estimated $2.56.
At the same time, its revenue reached $7.48 billion, beating the market projection of $7.48 billion.
For the fourth quarter, Netflix was gauged to earn $0.80 per share on $7.71 billion in revenue. Then, Wall Street predicts a $1.13 earnings per share on $7.66 billion in revenue.
Similarly, its global paid net subscriber additions rose to 4.40 million from the forecasted $3.84 million.
Moreover, Netflix forecasts an addition of 8.50 million subscribers from the expected 8.41 million in the next quarter.
The release of the global hit Korean series Squid Game boosted the platform’s subscribers, marking it as its biggest TV show.
Remarkably, there are a total of 142 million users who watched the dystopian show in its first four weeks.
Consequently, Netflix stated that it would utilize new metrics in reporting viewership.
The company will begin reporting hours viewed rather than the number of accounts that watched the show.
Furthermore, it explained that the latest metrics would match the outside services measuring TV viewing. Additionally, it would give proper attribution to rewatching.
Subsequently, it would include more title metrics outside of its earnings report.
At the same time, Netflix updated its investors on its current move into gaming.
The platform has already initiated testing its games in selected countries. Its push into gaming could bring subscribers more time to the site.
Wall Street Closed Higher as Netflix Declined
Meanwhile, US stock indexes closed higher, opposing the decline of Netflix. The recent boost came from the upbeat earnings results of highly-valued firms, firing up the market risk appetite.
The Dow Jones Industrial Average index accelerated 0.56% or 198.70 points to 35,457.31 per share.
Similarly, the Nasdaq Composite index advanced 0.71% or 107.28 points to $107.28 per share.
Then, the benchmark S&P 500 amplified 0.74% to 33.17 points to $4,519.63 per share.
Aside from Netflix’s solid report, Johnson & Johnson increased its 2021 adjusted profit forecast. Then it unchanged sales outlook for its COVID-19 vaccine.
Its shares jumped 0.14% or 0.23 points to $164.10 per share in the after-hours trading.
Similarly, Travelers Cos. edged up 0.61% or 0.95 points to $156.34 per share after beating its third-quarter profit estimates.
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