The fourth-quarter earnings report from Netflix NFLX +17.19% signaled the video streaming service is upping its bets on international expansion and original content, at the risk of higher costs and pressured profit margins in the short term. Judging by Wednesday’s stock surge, investors are just fine with that strategy (at least for now).
Netflix leaped nearly 20% at the open, thanks in large part to better subscriber growth than Wall Street expected and the company’s plan to double down on its international growth push as its U.S. business runs into the law of large numbers. (See “Netflix Soars On Subscriber Growth.”)
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