Netflix shares jump 6 percent on strong subscriber growth

FILE- This March 19, 2018, file photo shows the Netflix app on an iPad in Baltimore. Netflix, Inc. reports earnings Tuesday, Oct. 16. (AP Photo/Patrick Semansky, File)

NEW YORK (AP) — Netflix shares are jumping about 6 percent at the opening of trading after the company reported a big increase in subscribers.

The video-streaming service added 7 million subscribers worldwide from July through September, far above the company’s target of 5 million

Investors typically pay more attention to Netflix’s quarterly subscriber numbers than its profits, and the reaction to those numbers tends to be dramatic. Lower-than-expected subscriber growth for the second quarter sent Netflix shares into a tailspin that knocked 20 percent off their value in a month.

At around $367, Netflix shares remain below the record high of $423.21 reached in June. Still, Netflix is one of the top performers in the S&P 500 this year with a gain of 80 percent.

Copyright © 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.