Shares of the company were up 10 percent at $381.21 before the bell. The company has parlayed that into huge gains for investors.
Better-than-expected growth in the third quarter will keep that narrative alive, while another miss will probably prompt a major sell-off.
Netflix is growing faster than even its most bullish fans on Wall Street predicted, soothing doubts about its global prospects and sending its already-stratospheric stock higher.
Netflix's record-setting level of new programming paid off.
Shares of Netflix Inc soared 11 percent before the bell on Wednesday, after the company put fears of a slowdown in growth to bed by racking up seven million new subscribers between July and September. In all, Netflix added nearly 2 million more subscribers than the 5.09 million Wall Street expected. Sales growth has accelerated in recent years, jumping to 32 percent growth last year from 23 percent in 2015. "And we'll see how that does in terms of being able to accelerate our growth and get more access".
Revenue in the quarter increased 34% year-on-year to almost $4bn, while profits more than tripled to $403m.
Higher prices used to trigger cancellations, but the streaming service seems more immune.
Hastings, 58, suggested that he wasn't anxious about the competition.
Netflix addresses competition every quarter, typically reiterating some version of the same statement: We aren't anxious about growing competition; we are anxious about providing the best experience for consumers. While the company expects an inflection point in 2020, we do note that increasing competition from not only Disney but possibly launches by Warner Media, Apple, and Walmart should increase the amount of competition.
Wedbush analyst Michael Pachter was another skeptic, saying he was "mystified by the investor love affair with Netflix's India opportunity", pointing to price differences in Netflix's monthly plans versus cable TV in the country.