Netflix's subscriber growth trounced analysts' estimates in the latest quarter, renewing investor faith in a company that stumbled with its previous results.
The streaming-TV giant added 6.96 million users in the third quarter, topping the 5.09 million projection. Earnings obliterated Wall Street predictions as well, coming in at 89 cents a share21 cents above the estimate. The company also gave an upbeat forecast for the fourth quarter, sending the shares soaring in extended trading.
Netflix's record-setting level of new programming paid off. The company released 676 hours of new TV shows, movies and specials in the latest quarter, helping attract new customers. The world is Netflix's oyster. Most of the company's subscriber growth came from overseas, with international users approaching 80 million. The company believes that international markets will one day account for 80 percent to 90 percent of its customer base (like fellow internet giants Facebook and Google).