Netflix on Monday announced that it had achieved a milestone, and the news appeared to boost stock prices. The service revealed it now reaches 40 million worldwide subscribers, causing investors to push up the stock more than 11% in after-hours trading, reports The New York Times.
"But with each record, Netflix faces the same, pressing question: Can it go on adding subscribers by the millions to keep shareholders happy?" the story notes.
Despite the soaring stock price, Netflix Chief Executive Reed Hastings and Chief Financial Officer David B. Wells downplayed the the enthusiasm for the stock, writing in a shareholder letter, "Some of the euphoria today feels like 2003." They added, "We do our best to ignore the volatility in our stock."
Netflix said it added 1.3 million streaming customers in the U.S. in the third quarter.