Netflix (NFLX) shares soared in after-hours trading after the streaming giant reported a surge in subscribers. Third quarter earnings of $3.73 per share was better than the $3.49 Wall Street was expecting, while revenue of $8.54 billion was about in-line with estimates. What investors are cheering though are the rise in subscribers. The company added 8.76 million subscribers in the quarter, far more than the 6.2 million that had been expected. Netflix also announced it will be raising the prices of some plans in some regions.
Third Bridge Group Sector Analyst Jamie Lumley tells Yahoo Finance Live says "Netflix has definitely raised the bar again and seemed to have picked up a lot of momentum in that subscriber growth." Lumley says expectations were high that the password-sharing crackdown would boost subscriber numbers and that could be a reason why there was a surge in the past quarter. Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.