Netflix has seen its revenue and subscriber numbers surge in the last year, as the lockdowns left millions in need of daily entertainment in the comfort of their homes.
After the company’s Q4 2020 earnings revealed the streaming giant hit over 200 million subscribers for the first time, Netflix’s stocks also surged, leading to an impressive market cap growth.
According to data presented by TradingPlatforms.com, Netflix’s market cap jumped by $85-billion year-over-year, reaching $225-billion this month.
Netflix has benefitted from the stay-at-home boom, which pushed the growth of its user base, revenues, and stock price.
In January 2020, the combined value of Netflix shares amounted to $148,6-billion, revealed the YCharts data. After jumping to $170,1-billion in February, the company’s market cap plunged to $140,3-billion in March.
However, statistics show Netflix stock quickly bounced back with the market cap reaching $191,8-billion in June, almost a 40% increase in three months. The rising trend continued by the end of the year, with the combined value of Netflix shares surging to almost $230-billion in December, an $81-billion increase since the beginning of the year.
However, in January, Netflix stocks hit an all-time high. After the company revealed in its Q4 2020 earnings report that it was considering stock buybacks and had surpassed 200-million subscribers for the first time, its stocks soared nearly 20% in a day, the largest jump since 2016, with the market cap skyrocketing to almost $260-billion.
Although February and March witnessed a slight drop with the market cap slipping to $225-billion last week, this still represents a 60% increase year-over-year.
In 2020, Netflix reported revenue of almost $25-billion, up from $20,1-billion in 2019, continuing the impressive year-on-year growth the company has enjoyed over the last decade. The North American users generated more than 45% of that value, or $11,5-billion, up from $10-billion billion in the previous year.
Revenues generated in the US and Canada were 50% bigger than the amount brought in from Europe and more than triple the revenues generated in Latin America. However, the company also witnessed impressive growth in revenue from the Asia Pacific region, surpassing $2-billion for the first time.
The company’s 2020 earnings report also revealed the video streaming giant had a total net income of $2,76-billion in 2020 or 48% more than in 2019.
In 2020, Netflix added 36,6-million subscribers as lockdowns forced people to stay at home, the highest increase in a year. In the fourth quarter of 2019, the video streaming platform had 167-million subscribers worldwide. Over the next six months, this figure jumped to 193-million and continued rising. By the end of December last year, the number of Netflix subscribers jumped by another 10-million, reaching 203-million globally.