Netflix shares are rocketing up today as the streaming giant has revealed that they added 2.3 million US customers in the fourth quarter of the year. US only. That’s like, almost one percent of the entire population.
Investors are going nuts about how well Netflix is doing:
“Netflix remains on track to significantly disrupt the linear TV market through content differentiation, a compelling consumer proposition, and strong subscriber growth,” J.P. Morgan Securities analyst Doug Anmuth wrote in a note to investors.
As much as I hate the buzzword “disrupt,” they’re totally right in this case. Cable TV is starting to feel increasingly antiquated, and personally, I’m sort of growing tired of waiting half a year or so to watch a full season of a show, when under the Netflix model I can watch an entire season in a week or less. Unfortunately, the only new shows premiering with that model like House of Cards, Orange is the New Black or Arrested Development, are on Netflix.
So, time to buy stock in Netflix? Or is this a bubble waiting to burst?
[Photo via Jesse Grant/Getty]