Netflix's Stock Surges After Record Subscriber Numbers in Q1 Earnings Blowout
What a quarter.

Well, Netflix CEO Reed Hastings must be feeling pretty good on Tuesday. 

Netflix Inc. (NFLX) shares surged in pre-market trading Tuesday after the online media streaming group posted stronger-than-expected first quarter earnings and the biggest jump in subscriber growth in sixteen years.

Netlfix said revenues for the three months ending in March rose 40% from the same period last year to a record $3.7 billion, helping net income surge 62.8% to $290.1 million, or 64 cents a share, easily topping Wall Street forecasts. Netflix also said it added 1.96 million U.S. and 5.46 million international streaming subscribers, beating the consensus estimates of 1.5 million and 5 million, respectively, the highest readings since the company went public in May of 2002.

Netflix is a beastttttttttttt $NFLX https://t.co/oSyMqmM1W7

— Brian Sozzi (@BrianSozzi) April 16, 2018

"Last year, we expanded our efforts in original programming to unscripted shows across several genres. Our output in this area is now comparable to similarly-focused US domestic cable networks," the company said in a letter to shareholders. "Shows like Queer Eye and Nailed It are great examples of our ambitions in this area: engaging, buzz-worthy shows that drive lots of enjoyment around the world." 

Netflix shares were marked 7.09% higher in pre-market trading in New York, indicating an opening bell price of $329.59 each, a move that would take its year-to-date gain to an astonishing 70% and value the company at more than $142 billion -- just $8 billion shy of rival Walt Disney Co. (DIS)

TheStreet's founder, Jim Cramer, predicted blowout earnings for Netflix to his RealMoney subscribers Monday, noting that when a "23-year-old buys a big screen and doesn't bother to attach the cable -- a cord cutter -- it's palpable".

"This is a Netflix show right now and while I am sure there will be profit takers I know that those who guess they are going to spend too much on original content have to wonder, "hmm, how could I have been that wrong," Cramer said. 

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