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Netflix Inc. (Nasdaq: NFLX) stock soared as high as 18% in after-hours trading Wednesday after the company reported Q4 earnings of $0.79 per share - beating analysts' estimates of $0.66. NFLX reported revenue of $1.18 billion, up slightly from a projected $1.17 billion.
NFLX stock traded as high as $392 after hours.
The $0.79 earnings per share (EPS) was an increase of 507% from the previous year, when NFLX reported EPS of $0.13. Revenue was up from $945 million in Q4 of 2012.
Most importantly, Netflix added 2.3 million subscribers in the United States during Q4. That beat an already optimistic estimate of 2 million. Netflix currently has approximately 33.4 million subscribers in the United States.
The company reportedly added 1.74 million international subscribers. That's down slightly from the 1.84 million it added last year. NFLX reiterated its focus on bolstering its international subscriber base, which currently sits at 10.93 million.
Netflix officials estimate adding 3.85 million subscribers in the first quarter of 2014. The company has set a goal of adding 2.25 million U.S. subscribers and 1.6 million international subscribers.
Can Netflix (Nasdaq: NFLX) Stock Maintain Momentum?
NFLX stock has pulled back a bit in 2014 - a 10% drop in January - but that doesn't mean investors should run from NFLX stock.
Money Morning's Defense & Tech Specialist Michael Robinson still sees Netflix as a "game changer."
"[Netflix] just announced an initiative at CES (Consumer Electronics Show 2014) last week in which they're moving into ultra-high-definition television. It's called '4K.' Content is what's lacking in that area," Robinson told Stuart Varney on FOX Business' "Varney & Co." "We've got the technology, but nobody's broadcasting in that. They're going to launch an original series in this. They want to own the home market."
Original series "House of Cards" and "Orange Is the New Black" have changed Netflix's reputation from just a video-streaming service.
A fact that will also set Netflix apart from competition: It'll be one of the first companies to develop content for 4K technology.
MKM Partners raised its price target on NFLX stock from $370 to $440 earlier this week, citing these reasons: