Stock rose over 40% last month
Netflix (NFLX) stock rose over 40% in January 2018 to close at $270.30. Netflix stock has risen 92% in the last 12 months and generated returns of over 55% in 2017. Netflix stock is now trading 95.5% above its 52-week low of $138.26 and 5.8% below its 52-week high of $286.81.
What drove Netflix stock last month?
Netflix announced its 4Q17 results on January 23, 2018, and reported revenue of $3.3 billion with net income of $185.5 million and non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.41. In comparison, Netflix reported net income of $66.7 million and EPS of $0.15 in 4Q16.
The firm added 8.3 million subscribers in 4Q17, which was its highest-ever addition in a single quarter. Customer additions were driven by international markets, which accounted for 6.4 million customers in 4Q17. This growth rate in international markets is a good sign for Netflix, as it is struggling to add domestic subscribers at the same rate as before.
Popular shows including House of Cards, Stranger Things, and The Crown attracted subscribers in 4Q17. Netflix plans to invest in original content to gain additional subscribers in 2018 and beyond. The firm plans to invest $7.5 billion to $8 billion this year to generate original content.