Netflix shares soar 13% as it adds 2.41m extra subscribers

'Thank God we’re done with shrinking quarters,' co-founder Reed Hastings said of Netflix's forecast-busting results

Millie Bobby Brown as Eleven in Stranger Things. One of the most popular TV series in the world, it helped add 2.41m new subscribers to the Netflix streaming platform. Picture: Netflix

Netflix shares soared 13% a day after it issued a large increase in subscribers.

The streaming leader added 2.41m customers in the third quarter, exceeding internal forecasts as well as expectations on Wall Street. Netflix grew in all regions of the world and said that it expects to sign up another 4.5m globally this period.

While Netflix isn’t growing as quickly it was a couple years ago, the world’s most popular TV network is back on a positive trajectory. More customers are signing up than earlier in the year, the company said. That’s good news for investors in Netflix and its peers who suffered steep stock-market losses earlier in the year.

“Thank God we’re done with shrinking quarters,” co-founder and chairman Reed Hastings said during a webcast.

Shares of Netflix rose as much as 13% in New York trading on Wednesday, the most since January 2021. The stock had fallen 60% this year.

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Analysts at several Wall Street firms raised their price targets for Netflix, with JPMorgan Chase and Deutsche Bank upgrading their ratings on the company. Other streaming companies, such as Roku and Walt Disney, also rose.

A strong slate of fresh programmes attracted millions of new viewers in the third quarter. The period started with new episodes of Stranger Things, one of the most popular TV series in the world.

• Bloomberg