Netflix crosses $100 billion market capitalisation as subscribers surge

The Netflix Inc (NFLX.O) snagged two million more subscribers than Wall Street expected in the final three months of 2017, tripling profits at the online video service that is burning money on new programming to dominate internet television around the world.

The results drove Netflix to a market capitalisation of more than $100 billion (FJ$201b) for the first time. Shares jumped nine per cent to over $248 (FJ$499) in after-hours trading on Monday after rallying throughout the month and rising 53 per cent last year.

The company has signed up more than half of all U.S. broadband households and is building its customer base in 190 countries by spending billions on programming.

Netflix picked up 6.36 m subscribers in international markets from October through December, when it released new seasons of critically acclaimed shows “Stranger Things” and “The Crown” as well as Will Smith action movie “Bright.” That topped Wall Street expectations of 5.1 million, according to FactSet. Along with 1.98 m customer additions in the United States, the company ended the year with 117.58 m streaming subscribers around the globe, despite a price hike in October.

“Netflix is pouring more and more money into making content, and it is directly translating into more subscribers,” BTIG analyst Richard Greenfield said. “They see a huge opportunity and they are moving as fast as they can to attack it.”