Through many investors were skeptic, Netflix Inc. has now successfully become the best performing stock in the Standard & Poor’s 500 Index as it has been able to sign up more than 2 million of new US customers. On today, the shares of Netflix went ahead by 24% as the subscribers gains defeated the estimates set by the analysts on yesterday. Apart from the US customers, the online video service was able to add another 1 million subscribers internationally. In 2013, Netflix shares have gained around 134%, which is the highest among all the listed S&P 500 Index companies.
Reed Hasting played a very important part in positioning Netflix as the undisputed leader in the online video industry. Due to pricing and product missteps, a couple of years ago, the company lost its momentum a bit. However, since then, due to the original shows and exclusive studio deals, the company has been able to bounce back. The company has over 29.2 million US customers at this point of time and thereby; it has surpassed Time Warner’s HBO as well. The data was released by SNL Kagan. Hasting aims to reach out to at least 90 million subscribers in US.
Hasting stated that he and his team members are working very hard to make the best possible service possible. He added that the company has shown phenomenal results as it grew by 3 million subscribers globally within a single quarter only. People look out for click and watch Internet video and Netflix provides them with just that. Each share of Netflix costs $216.99 at this point of time, marking its highest value since September, 2011. On late yesterday, the first quarter results were published by the company officials.
Michael Olson, who works as an Analyst for Piper Jaffray, stated that many investors feel that they are on a path back towards the level of profitability that they gained in both 2010 and 2011. Jaffray has a neutral rating on the Netflix stocks. He added that many are confident that originals can create an increasingly exclusive offering, which will be able to attract subs and thereby reduce churn.
Many thought that Netflix would end the first quarter with 29 million online US users. Later in 2013, the company plans to expand to another unnamed European market. International streaming revenue tripled from its value of the earlier year.