Netflix shares soar as it announces 6.96m new members

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Revenue: $4 billion. Analysts were expecting $4 billion, according to Bloomberg. The company has parlayed that into huge gains for investors. Netflix said it expects subscribers to grow by another 9.4 million in the fourth quarter, up 13% compared to past year. Viacom 18's Voot was in third place with 11%, while Amazon Prime Video had a 5% share and Netflix 1.4%. Domestically, Netflix added 1.09 million subscribers, compared to an estimate of 673,800. The last three months of the year bring new movies from top-tier filmmakers, including the Coen brothers, Paul Greengrass and Gravity director Alfonso CuarĂ³n, on whose Roma Netflix is pinning Oscar hopes. Netflix has prepared for this, beefing up global programming and production as it approaches a ceiling in the United States. "The variance relative to forecast was due to greater-than-expected acquisition globally, with strong growth broadly across all our markets including Asia".

Rival Amazon, which launched its Indian studios past year, plans for 17 original programs, including shows in Hindi, Tamil and Telugu. "However, given Netflix's longtime leadership and extensive content library, competitors will be hard-pressed to build streaming businesses that can aspire to become market leaders". Netflix acknowledged that India is "somewhat of a tough market". In all, Netflix added nearly 2 million more subscribers than the 5.09 Wall Street expected.

App analytics provider Sensor Tower pointed to the signs of increased growth that the market has grown accustomed to, with Q3 earnings from in-app subscriptions rising by over 90% YOY thanks to some 50 million new installations.

Netflix expects to burn through more than $3 billion in cash this year and in 2019.

There is more uncertainty ahead as competition moves in: Apple has been beefing up its offerings, and Disney is expected to debut its much-anticipated direct-to-consumer service next year.

Q3 is also thought to have seen more people flock back to the platform thanks to new seasons of its most popular shows.

Overall, Wall Street continues to be enamored with the streaming service.

"My competitors have Netflix turning cash flow positive in two years, that's just insane - it's not going to happen", Wedbush technology analyst Michael Pachter said on Yahoo Finance's "Midday Movers' show".

The firm's shares are have risen than 65% so far this year. But investors may wonder where the money is going if Netflix misses again.

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