By Micah Maidenberg

 

Netflix shares jumped more than 13% Wednesday, the first trading session following the company's fourth-quarter earnings report.

Shares are surging as investors digest--and price in--a raft of news from the Los Gatos, Calif., company, including its expectation that it won't need to tap the debt markets going forward to finance day-to-day operations and that it believes it will break even on cash this year.

Netflix is also contemplating a share-repurchase program as it generates cash. Analysts at JPMorgan Chase & Co. predicted buybacks could begin in the second half of the year.

The company faces an expanding number of competitors that have also launched streaming services but still was able to reel in a net 37 million new subscribers last year, lifting its count to about 204 million as of the end of the year.

Stifel Financial Corp. predicted that Netflix could reach 400 million subscribers by 2030 as it grows overseas.

 

Write to Micah Maidenberg at micah.maidenberg@wsj.com

 

(END) Dow Jones Newswires

January 20, 2021 10:24 ET (15:24 GMT)

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