Netflix Stock Soars on Q3 Earnings Beat and Wall Street Upgrade: What’s Next For the Streaming Giant? (VIDEO)

Shares of NFLX Stock Skyrocketed 14% After the Closing Bell Tuesday in Response to the Company’s Q3 2022 Earnings, Which Saw the Streaming Giant Post Better Than Expected Revenue and Earnings Per Share (EPS)

With analysts’ consensus estimates projecting Netflix would report revenue of $7.84 billion and EPS of $2.13 per share, the company surprised the market when it announced Q3 revenue and EPS came in at $7.93 billion and $3.10, respectively. Netflix also reported it added 2.41 million subscribers during the third quarter, more than double its forecast from Q2 2022.

Netflix stock is skyrocketing Wednesday morning as the rest of the stock market crumbles. If you’re an avid investor, you’ll want to stick around until the end of this article for all the juicy details on Netflix (NASDAQ: NFLX) and exactly why they’re soaring midweek.

With previous negative sentiment, Netflix shaved off almost 80% from previous all-time highs from 2021 into 2022 this year. Many thought the company could become the next Blockbuster. However, the company’s streaming service initiatives and innovative practices beg to differ.

Netflix is continuously implementing new practices starting with its latest ad program. Although users might not be fond of the initial idea of the ad program, it may be their largest money maker yet and here’s why. Now, Netflix is partnering with Microsoft to roll out its new ad tier. What does that mean? Simply put, it’s a new affordable viewing option for users. Netflix will do it by showing advertisements. Initially, the concept has shown to be controversial with investor skepticism as the entire point of the paid version of Netflix was to have an ad-free experience. However, from a marketing standpoint, this allows the streaming giant to scale even further.

Source: CNBC Television YouTube

Also Read: Earnings Surprises From These 2 Major Banks Sparks Market Rally (VIDEO)

The proof is in the pudding. In this sense, they’re crushing expectations despite their stock sinking into 2022. Their growing subscription count backs this up, adding 2.41 million net subscribers and smashing through third-quarter forecasts with anticipated growth into Q4. With revenue approaching nearly $8 billion, the company is proving they’re still a force to be reckoned with, and investors are profiting with NFLX up 14% Wednesday morning on the trading day.

Wall Street claims it might be time to buy Netflix. However, according to Warren Buffet, it’s important to “be fearful when others are greedy, and greedy when others are fearful.” Therefore, companies with strong fundamentals and a high intrinsic value will always be valuable companies to own regardless of a missed earnings report or weak overall market sentiment.

The question is, are you bullish on Netflix? And which companies are you investing in through the current bear market? Let us know on Facebook and Twitter. Be sure to tag us @WealthyVC, and we’ll share your thoughts!

Shares of Netflix are currently trading at $269.54 per share, down -1.04% on the day. YTD, NFLX stock is down -54.88%.

Learn more about Netflix: Website | Investor Deck | NFLX Chart

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Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks mentioned in this article.