Netflix Stock Surges 13% After Q4 Subscriber Boom

Netflix Inc. (NASDAQ:NFLX) shares jumped over 13% in afterhours trading Tuesday, driven by stellar Q4 earnings and subscriber growth. The streaming giant reported earnings of $4.27 per share on revenue of $10.25 billion, surpassing Wall Street expectations of $10.13 billion in revenue.

Netflix added 18.9 million subscribers in Q4, doubling the forecasted 9.2 million, fueled by a strong content lineup and rising demand for its ad-supported tier. Key drivers included the success of Squid Game season 2, Carry-On making Netflix’s all-time Top 10 films list, and record-breaking streams for the Jake Paul vs. Mike Tyson fight and two NFL games on Christmas Day.

The ad-supported tier accounted for more than 55% of sign-ups in participating countries, with membership growing nearly 30% quarter-over-quarter. Netflix aims to expand its advertising revenue with a first-party ad platform rollout in 2025, starting in the U.S.

For 2025, Netflix raised its revenue forecast to $43.5 billion–$44.5 billion, surpassing prior guidance by $500 million. Analysts had projected $43.6 billion.

Netflix’s impressive Q4 performance highlights its growing dominance in the streaming industry, bolstered by strategic content and ad-tier offerings.