Shares of Netflix jumped more than 7 percent in the premarket Tuesday after the company said it added nearly 1 million more subscribers in the previous quarter than analysts were expecting.
The streaming giant said Monday after the close it added a total of 7.41 million subscribers in the first quarter. In the U.S., Netflix’s user base increased by 1.96 million. Analysts polled by StreetAccount expected Netflix to add a total of 6.5 million subscribers, with 1.48 million of those coming from the U.S.
Netflix also reported earnings and revenue for the quarter that matched analyst expectations.
“NFLX’s content strength & the global, secular shift to Internet entertainment are driving subscriber upside & we believe providing mgmt w/greater confidence into what is normally a seasonally slower 2Q,” J.P. Morgan analyst Doug Anmuth said in a note Tuesday.
Anmuth also hiked his price target on the stock to $385 per share from $328, implying a 25.1 percent upside from Monday’s close of $307.78.
“Overall, NFLX continues to execute extremely well, emphasizing its case as the best global, secular growth story in tech,” Anmuth said.
The company’s stock was the best-performing S&P 500 component before the bell Tuesday.