Netflix more than doubled the quarterly
growth it predicted in January, well before the
COVID-19 outbreak began to shut down many
major economies. It was the biggest three-
month gain in the 13-year history of Netflix’s
streaming service.
The numbers — released this week as part of
Netflix’s first-quarter earnings report — support
a growing belief that video streaming is likely
to thrive even as the overall U.S. economy sinks
into its first recession in more than a decade.
“We’re acutely aware that we are fortunate to
have a service that is even more meaningful to
people confined at home, and which we can
operate remotely with minimal disruption,”
Netflix said in a statement.
Investor optimism about Netflix’s prospects
propelled the company’s stock to new highs
recently, a sharp contrast with the decline in the
broader market.
Netflix’s shares initially surged in after-hours
trading after the first-quarter report came out,
then drew back. The strengthening dollar will
likely depress the company’s revenue from
outside the U.S., including some of its fastest
growing markets.
That’s one reason Netflix’s revenue only climbed
17% from last year to $5.8 billion, even though it
ended March with nearly 183 million worldwide
subscribers, a 23% increase from the same time
last year. Netflix earned $709 million in the first
quarter, nearly tripling from last year.
Netflix shares edged up by less than 1%
extended trading to $437.37, leaving them
below last week’s record high of $449.52.