Streaming service Netflix added almost 7m new customers in the third quarter pushing its share price 9.7% higher in trading on 17 October, the most since April.
It also offered an upbeat outlook, targeting almost 29m customers by year end, as it comfortably beat analyst expectations. Its recovery comes after its stumble last quarter triggered concerns of a tech slowdown.
Paul Craig, portfolio manager, Quilter Investors, says: “Netflix has great subscriber numbers, just don’t look at the cashflow. Despite recent falls in technology names, they’re still expensive, but these could perhaps be the first signs of a changing of the guard as quality and value pick-up the baton from growth.”