Netflix reported a massive increase of 18.9 million subscribers during its holiday quarter, far exceeding Wall Street expectations.
The surge was attributed to the platform’s expansion into live sporting events and the highly anticipated return of its hit South Korean series, Squid Game.
Netflix sought to capitalize on its galloping popularity by raising prices in the U.S., Canada, Portugal and Argentina as it spends more on programming. In the U.S., the company’s ad-supported service will cost $7.99 a month, up from $6.99, while the premium package will cost $24.99, up 9% from existing pricing.
Investors reacted enthusiastically to the results, sending Netflix’s stock surging about 13% in extended trade, lifting its stock market value by almost $50 billion. Over the last year, Netflix shares have gained more than 77%, outpacing the S&P 500’s 24% rise.
