"Netflix's Margin Growth and Subscriber Surge Propel Stock and Earnings"

Netflix CFO Spencer Neumann stated that the company has a "long runway of margin growth" as it implements strategies such as cracking down on password sharing, introducing a cheaper ad-supported tier, and raising prices. The company's operating margin for the third quarter exceeded expectations, and it expects full-year operating margin to reach 20%. Neumann also hinted at the potential for margins similar to other media networks, which historically range between 40% to 50%. Netflix plans to continue investing in content categories, advertising capabilities, live programming, and gaming. The company recently announced price hikes in the US, UK, and France to improve average revenue per membership. Netflix reported a surge in subscribers, beating earnings expectations and causing the stock to rise over 12%.