Shares rose as much as 10 percent to $380 in morning trading before paring some gains. The stock closed at $364.70.
The U.S. streaming giant on Tuesday revealed that it had picked up 6.96 million subscribers in the third quarter of the year, against analyst expectations of a more than 5 million increase in users. The company is seeing massive growth beyond its home market, according to the numbers. Out of the 6.96 million additional users it reported, 5.87 million of those came from overseas.
Netflix's third-quarter revenues came in line with expectations, at $4 billion, while earnings per share (EPS) beat estimates, at 89 cents versus the 68 cents forecast by analysts.
Multiple analysts revised their stock price target for Netflix, with Goldman Sachs being among the most bullish, lifting its target to $480 from $430. Here's a rundown of some other price target hikes:
- Morgan Stanley raised its target price to $475 from $450.
- J.P. Morgan raised its target price to $450 from $415.
- Raymond James raised its target price to $435 from $400.
- Canaccord Genuity raised its target price to $470 from $450.
Both Goldman Sachs and Raymond James cut their price targets for Netflix on Tuesday, ahead of the company's financial results.