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LOS ANGELES — Netflix shares popped more than 12% after the closing bell Wednesday as the company reported a boost in subscriber growth driven by a password-sharing crackdown efforts and interest in its new ad-supported tier.

The streaming giant added 8.76 million global subscribers during the quarter, higher than 5.49 million Wall Street had expected, according to estimates from Street Account. It’s the biggest quarterly net add total for the company since second-quarter 2020, when Netflix added 10.1 million.

Here are the results:

  • Earnings: $3.73 vs $3.49 per share expected, according to LSEG, formerly known as Refinitiv
  • Revenue: $8.54 billion vs $8.54 billion expected, according to LSEG
  • Total memberships expected: 247.15 million vs. 243.88 million expected, according to Street Account

Netflix said that its ad plan membership grew nearly 70% quarter-over-quarter, although it did not disclose what percentage of its base is subscribed to this tier.

The company is keeping its ad tier pricing at at $6.99 a month in the U.S. while it’s basic and premium services will see a price hike starting today. Netflix’s basic plan will now cost $11.99 (up from $9.99) and premium will be $22.99 a month (up from $19.99). Netflix’s standard plan will remain at $15.49 a month.

The price increases come as the company seeks to improve its profitability and grapple with higher production costs.

As part of its new deal with Hollywood’s writers, Netflix, alongside other members of the Alliance of Motion Picture and Television Producers, have agreed to higher wages and monetary benefits based on streaming popularity. The AMPTP has yet to finish negotiations with striking actors, but expectations are that costs for creating content will rise when a new contract is finalized.

“The last six months have been challenging for our industry given the combined writers and actors strikes in the U.S.,” Netflix said in its earnings release Wednesday. “While we have reached an agreement with the WGA, negotiations with SAG-AFTRA are ongoing. We’re committed to resolving the remaining issues as quickly as possible so everyone can return to work making movies and TV shows that audiences will love.”

The company forecast that revenue will jump 11% in the fourth quarter, reaching $8.69 billion, below Wall Street expectations of $8.77 billion. Netflix said it expects net subscriber adds will be similar to the third quarter.

It warned that the strength of the U.S. dollar in recent months will result in a roughly $200 million drag on fourth-quarter revenue.

As for Netflix’s profitability, the streamer now expects its full-year 2023 operating margin will be around 20%, the high end of its previous forecast range of 18% to 20%. It also said full-year 2024 should see operating margins of 22% to 23%.

The company also addressed shareholder concern about its executive compensation model, telling investors that it would make “substantial changes” in 2024 to a more conventional model. Compensation will still be based on performance.

Co-CEO Ted Sarandos and former co-CEO Reed Hastings each took home more than $50 million in 2022. Hastings took most of his earnings in stock options, while Sarandos elected to have a $20 million base salary and the rest in stock.

After Greg Peters was named co-CEO and Hastings stepped down, the company set a salary cap of $3 million for executives. However, they are still entitle to an annual target bonus and additional stock rewards.

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Salesforce adds voice calling to Agentforce AI customer service software

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Salesforce adds voice calling to Agentforce AI customer service software

Salesforce CEO Marc Benioff speaks at the Dreamforce conference in San Francisco on Sept. 17, 2024.

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Salesforce is adding voice to its Agentforce software, letting clients go beyond text when using artificial intelligence agents to respond to customer questions.

With Agentforce Voice, companies can customize the tone and speed of voices and adjust the pronunciation of specific terms, Salesforce said Monday, ahead of its Dreamforce conference in San Francisco this week. The feature also allows people to interrupt the AI agent during phone calls.

Voice is becoming a bigger part of the generative AI boom, which started with text-based prompts in late 2022, when OpenAI launched ChatGPT. In the past year, OpenAI and Anthropic have enabled their chatbots to conduct spoken conversations without sounding overly robotic. Now that capability is taking hold inside business software.

Agentforce Voice will integrate with corporate phone systems from Amazon, Five9, Genesys, Nice and Ericsson’s Vonage.

Former Salesforce co-CEO Bret Taylor is also trying his hand in the market. Taylor helped start Sierra in 2023, and last year the startup announced that its AI agents “can now pick up the phone.” Sierra has been valued at $10 billion, and has a client list that includes ADT, SiriusXM and SoFi.

Salesforce has been under pressure this year in part due to investor concern that software companies could lose business as AI moves deeper into coding. The stock is down about 28% so far in 2025, while the Nasdaq has gained around 15% over that stretch.

Anthropic told reporters in September that its Claude Sonnet 4.5 model built a chat app similar to Salesforce’s Slack in 30 hours. In Salesforce’s latest earnings report, the company warned that new AI products “may disrupt workforce needs and negatively impact demand for our offerings.”

Salesforce CEO Marc Benioff has downplayed the risk to this company.

“When we get into this kind of zero-sum game, well, all this is going to get wiped out, or all this is going to change, then, you know, you’re not dealing with somebody who actually runs a company, because that’s not the way business works,” Benioff told CNBC’s Morgan Brennan last month. “Business is incremental, it’s evolutionary, it’s growing, it’s evolving, and we don’t see that kind of change.”

Salesforce launched Agentforce last year as a service that could respond to customer requests over text chats with help from generative AI models. Agentforce now has more than 12,000 implementations, according to a statement. But there’s some skepticism about its popularity.

“Investor enthusiasm around Agentforce has moderated as adoption has lagged expectations,” RBC Capital Markets analysts, who recommend holding the stock, wrote in a note to clients last week.

In November, Salesforce will provide early access to Agent Script software, which organizations can use to customize what agents say and do.

WATCH: Salesforce CEO Marc Benioff on what the market is getting wrong about AI

Salesforce CEO Marc Benioff on what the market is getting wrong about AI

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Chip stocks bounce on Broadcom, OpenAI deal and easing China tensions

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Chip stocks bounce on Broadcom, OpenAI deal and easing China tensions

A SK Hynix Inc. 12-layer HBM3E memory chip displayed at the Semiconductor Exhibition in Seoul, South Korea.

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Chip stocks bounced on Monday, clawing back losses from Friday’s market rout as OpenAI announced another computing deal with a major chipmaker and U.S.-China tensions eased.

OpenAI and Broadcom announced a deal to develop custom artificial intelligence chips. The Sam Altman-led startup has recently inked agreements with Nvidia and Advanced Micro Devices.

Broadcom shares bounced 9% on the news.

Over the weekend, President Donald Trump tried to calm worries about China in a post on Truth Social, saying it “will all be fine.”

The VanEck Semiconductor ETF jumped nearly 4%, while Nvidia and AMD rallied more than 3% each. Taiwan Semiconductor and On Semiconductor jumped about 6% each, while Micron Technology rose over 4%.

Trump sent markets into a selloff on Friday after he threatened massive tariffs on China in response to the country’s latest clampdown on rare earths. He later pledged to levy new tariffs of 100% on China imports starting on Nov. 1 and would also impose export controls on “any and all critical software.”

The tech megacaps lost $770 billion in market cap on Friday.

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Broadcom’s chip president says mystery $10 billion customer isn’t OpenAI

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Broadcom's chip president says mystery  billion customer isn't OpenAI

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Charlie Kawwas, president of the semiconductor solutions group at Broadcom, on Monday said that OpenAI is not the mystery $10 billion customer that it announced during its earnings call in September.

Kawwas appeared on CNBC’s “Squawk on The Street” with OpenAI’s President Greg Brockman to discuss their plans to jointly build and deploy 10 gigawatts of custom artificial intelligence accelerators.

The deal was largely expected after analysts were quick to point to OpenAI as Broadcom’s potential new $10 billion partner. But after the companies officially unveiled their plans on Monday, Kawwas said OpenAI does not fit that description.

“I would love to take a $10 billion [purchase order] from my good friend Greg,” Kawwas said. “He has not given me that PO yet.”

Broadcom did not immediately respond to CNBC’s request for additional comment.

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OpenAI has been on an AI infrastructure dealmaking blitz as the company looks to scale up its compute capacity to meet anticipated demand. The startup, which is valued at $500 billion, has inked multi-billion dollar agreements with Advanced Micro Devices, Nvidia and CoreWeave in recent weeks.

Broadcom does not disclose its large web-scale customers, but analysts have pointed to Google, Meta and TikTok parent ByteDance as three of its large customers. During its quarterly call with analysts in September, Broadcom CEO Hock Tan said a fourth large customer had put in orders for $10 billion in custom AI chips.

The order increased Broadcom’s forecast for AI revenue next year, which is when shipments will begin, Tan said during the call.

OpenAI and Broadcom have been working together for the last 18 months, and they will begin deploying racks of custom-designed chips starting late next year, the companies said Monday. The project will be completed by 2029.

“By building our own chip, we can embed what we’ve learned from creating frontier models and products directly into the hardware, unlocking new levels of capability and intelligence,” Brockman said in a release.

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