Media Stocks Rally Around Netflix Subscriber Numbers
deadline.comShares of Disney, Paramount, Warner Bros. Discovery all closed higher and continued to gain in after-hours trading when Netflix, the dominant streamer, lost fewer subscribers in the June quarter than it said it would.Netflix clearly led media shares as its battered stock surged nearly 6% during the session and gained more than 7% after-hours.
In a pill of first quarter announced in April, Netflix lost net subscribers for the first time in years and anticipated a steep dip of 2 million more for the latest three months — sending Wall Street into a tailspin calculating the costs/benefits of streaming.
But it only lost 970,000, or less than half of what it predicted, and said the number will turn positive in the current quarter.The relief on CNBC was palpable and spread.
Disney, which jumped more than 4% by the close, gained another 2% in late trade. Warner Bros. Discovery rose 3% for the session, then another 1.4%.
Read more on deadline.com