Netflix regained its stride with surprisingly strong subscriber growth during the summer after an unexpected stumble during the spring triggered worries its video streaming service was losing its allure.
The service added 7 million subscribers worldwide from July through September, far above the target of 5 million set by Netflix‘s management and exceeding analyst projections.
The third-quarter performance came after Netflix fell well shy of its subscriber goals for the April-to-June period, raising fears that fiercer competition from Amazon, Hulu, and others streaming service was siphoning away viewers.
Investors cheered the reassuring results released Tuesday, lifting Netflix’s stock by 12 percent to $388 in extended trading.
Netflix earned $403 million on revenue of $4 billion in the quarter. But the company continued to burn through cash to pay for its programming.