Netflix Q3 - Strong beat, shares rally

If you are a Netflix shareholder, I assume that you are a subscriber too? Everyone seems to have their favourite series. Have you watched 'The Perfect Couple' and 'Nobody Wants This' or 'Tokyo Swindlers'?

We first bought Netflix shares for customers back in October 2011. In those days, the company still posted DVD movies, and the share price was just $10.74. Now they are at $763.89 per share. That's a new all-time high after some wild swings in recent years.

Regular readers might recall that I predicted that Netflix will one day have a billion customers paying $50 each per month. Well, according to their results last week, there are 283 million subscribers now, and the average revenue per user in their home market is only $17.06. Some way to go, but they are getting there.

Netflix has an increasingly successful advertising business too. Their ad-supported subscription plans are much cheaper, and advertisers like the ability to target ads at users with specific preferences based on their viewing patterns.

The content slate for the final months of the year looks great including a second season of Squid Game, the Jake Paul versus Mike Tyson fight and two NFL games on Christmas Day. I'm looking forward to 100 Years of Solitude based on the iconic novel by Gabriel García Márquez from Colombia.

If you don't currently own Netflix shares, send some fresh cash and add them to your portfolio.