Is it Time to Take Profits in Netflix Stock?
The company unveiled its third-quarter 2021 results in late October. Netflix beat analyst expectations and delivered subscriber growth of 4.38 million. That pushed its subscriber base to over 214 million worldwide. Netflix released the most widely watched property in its history this year; Squid Game. This could be a formidable property for the company going forward.
Revenue rose 16% year-over-year to $7.48 billion. Meanwhile, earnings per share rose to $3.19 – up from $1.74 per share in the previous year. While the pandemic boosted home entertainment engagement, it also led to production delays. The company said that this contributed to a dip in earnings in the first and second quarter of 2021. However, it looks like it is back on track in the second half of the year.
Netflix projected that it will add 8.5 million subscribers in the fourth quarter of 2021, which would push its global total to 222 million.
Meanwhile, Netflix started its push into the video game space in the third quarter. It also partnered with Walmart to develop a line of consumer products.
Shares of Netflix are still trading in solid value territory compared to its industry peers. This company has high growth potential and is still worth snatching up in late 2021.
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