Shares of Netflix Inc. NFLX experienced a 15% surge in premarket trading on Wednesday on the heels of the company announcing a 16% price hike for its standard streaming plan.
What Happened: Netflix’s shares saw an increase of $128.14 in the premarket, following a 1.35% rise at the close of the previous day, ending at $869.68.
The price increase, which took the ad-free standard plan from $15.49 to $17.99 per month, was announced in conjunction with Netflix’s impressive fourth-quarter earnings report.
The earnings report highlighted a 16% year-over-year revenue growth, reaching $10.25 billion, and a subscriber increase of 18.91 million. This surge in subscribers brought the total number of paid memberships to a staggering 301.63 million. The price increase also impacted the premium tier, now priced at $24.99, and the ad-supported option, which rose to $7.99.
Netflix’s robust performance, marked by a record operating income surpassing $10 billion for fiscal 2024, suggests a promising future for the company. Netflix anticipates its 2025 revenue to fall between $43.5 billion and $44.5 billion, indicating a 12-14% growth. This projection underscores Netflix’s relatively small current share of the estimated $650 billion market opportunity across its key regions.
The company’s strong performance, driven by popular shows like ‘Squid Game’ and its NFL content, has led to a significant increase in its subscriber base. The price hike, which is the largest in the company’s history, is a bold move that reflects Netflix’s confidence in its future growth and content offerings.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
