2017.10.1623:49:00UTC+00Netflix Shares Hit Record Highs on Strong Subscriber Growth

Shares of Netflix reached a historic high and advanced by more than 1.2 percent in extended trading to $205.07. So far, the top global online video streaming service's stock is up by around 64 percent this year.

Netflix added 5.3 million subscribers in the third quarter, strongly beating analysts average estimate of 4.5 million. Netflix estimates 6.3 millions subscriber gains for the present quarter, marginally above Wall Street's estimate of 6.25 million. Such addition would bring its global client base to almost 115.6 million.

The group, renowned for their original and blockbuster TV shows, is also bolstering spending to produce and secure content as it makes its push in international markets, which now represents the majority of its subscriber growth.

In international markets, Netflix added 4.5 million subscribers. It added 3.69 million overseas and 810, 000 in its U.S. market, according to data from Factset.

Revenue increased 30 percent to $2.99 billion in Q3. Meanwhile, the firm's net income rose to $130 million or 29 cents per share, in the latest quarter from $52 million or $12 cents per share in the year prior period.

Netflix said in a statement to investors that it would increase its content budget to $7 billion- $8 billion next year.

There is bullish sentiment among investors regarding Netflix's ability to sustain its subscriber growth. The company's shares traded at 101 times expected earnings for the following 12 months.