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Netflix, Inc. (NASDAQ: NFLX) shares jumped more than 14% on Wednesday morning after the company reported better-than-expected subscriber growth in the fourth quarter and indicated it could launch a share buyback program.
Netflix reported $1.19 in adjusted fourth-quarter EPS, missing consensus analyst expectations of $1.39. However, the company’s $6.64 billion in revenue was slightly ahead of analyst estimates of $6.62 billion and represented 21.3% year-over-year growth.
Perhaps the biggest bullish catalyst for Netflix investors was the company’s subscriber growth. Netflix reported 8.5 million global paid net subscriber additions, far surpassing Wall Street’s 6.47 million estimate. Netflix’s total paid subscribers also surpassed 200 million for the first time.