Netflix saw its stock rise the most it ever has in the company’s history on Thursday after announcing it had beat its fourth quarter forecast, Bloomberg News reported. According to Bloomberg, the stock rose 43% to $145.80 at 9:49 a.m. EST.
Netflix announced on Wednesday that it had increased its subscription numbers by 2.05 million in the fourth quarter and is now in 27.15 million American households. This figure, according to the company, led to a net income of $7.9 million.
Industry watchers had, in some cases, been predicting a loss for Netflix. Instead the company actually outperformed its own predictions. Netflix has been attempting to maneuver a change from its previous DVD model toward a more profitable future and growth through efforts such as commissioning its own original content. The company is one of the poster children for the next generation of TV technology, streamed over the Net.
Is Netflix’s success sustainable? Or will it be surpassed by a newer, more future-focussed streaming video company?
[Image: Flickr user exalthim]