Netflix Stock Soars On Higher Subscriber Gains

Netflix rocketed up 10% in after-hours trading on the news of better-than-expected subscriber gains.

Netflix added 5.2 million subscribers during the second-quarter reporting period -- now totaling 104 million worldwide. Media analysts were expecting a gain of around 2.5 million for the period.

The big subscription video-on-demand service now has 51.9 million U.S. total subscribers (adding 1.07 million) and 52 million international subscribers (4.1 million more).

For the third quarter of this year, Netflix expects another 4.4 million in total subscriber growth -- 750,000 more in the U.S. and 3.65 million more internationally.

On Monday, the company closed at $161.70 -- up 0.36% on the day -- but soared to $179.25 in after-hours trading, due to its quarterly earnings/subscriber news release.

Revenues were up 33% to $2.8 billion and net income grew 61% to $65.6 million. A year ago, revenues and net income were $2.1 billion and $40.8 million, respectively.

Netflix's marketing spending rose during the period, up 27% to $1.9 billion.



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