Netflix Stock Grows by 62%, Subscriber Base Up by 20.4% in 2020

3 years ago

Streaming media giant Netflix outperformed the stock market in 2020. Marketwatch states that its stock price grew by 62% in the 12-month period.

According to the research data analyzed and published by Comprar Acciones, the streaming giant added 28.3 million paid subscribers in the first nine months of the year. It had 195.15 million paid subscribers globally as of Q3 2020.

Netflix Subscriber Base Grows by 20.4% Year-Over-Year

Netflix’s subscriber base grew from 158.33 million in Q3 2019 to 167.09 million in Q4 2019. It reached 182.86 million in Q1 2020 and 192.95 million in Q2 2020. 

Even prior to the pandemic, the company was reporting rapid growth. In the period between 2015 and 2019, its revenue nearly tripled. Its subscriber base also rose from 70.8 million to 167.1 million in that time. 

Since the start of 2016, its stock grew at an average annualized rate of 37.5% yearly. Between November 2019 and February 2020, its platform had an average of 1.06 million monthly visits. The figure shot up to 1.35 million in March 2020, a 29% uptick month-over-month (MoM).

However, analysts warned that the streaming company’s stunning performance in H1 2020 was an unsustainable pull-forward resulting from quarantine orders. Attesting to this, H1 2020 saw the subscriber base grow by 26 million. In contrast, only 2.2 million new paid subscribers were added in Q3 2020. 

On the other hand, based on the company executives’ projection, it would grow to 201.15 million subscribers in Q4 2020, up by 20.4% year-over-year (YoY). Likewise, they projected an earnings per share (EPS) increase of 3.8% to $1.35 and a 20.2% revenue uptick to $6.57 billion. 

According to Zacks Consensus Estimate, the Netflix EPS increase is set to be 6.2%, reaching $1.38. Revenue for the to-be-reported quarter (Q4 2020) is forecast to rise by 20.8% to $6.60 billion.

The full story, statistics and information can be found here:

This article is syndicated from Daily Finance.

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