Shares of (NASDAQ: NFLX) jumped on Thursday, surging as much as 8.6%. As of 11:23 a.m. ET, the stock was still up 7.9%.

The catalyst that drove the streaming pioneer higher was news that the company's ad-supported tier is showing promise, after a lackluster debut.

Netflix introduced its Basic with Ads plan -- the company's advertising supported tier -- six months ago. At the time, investors were concerned existing subscribers would trade down to the lower-priced plan, but that hasn't played out. When the company provided an update in a virtual meeting with advertisers, Netflix reported that its advertising business is finally gathering steam. The ad-supported tier has hit 5 million monthly active users, after reporting just 1 million in March.  

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Source Fool.com