(Netflix article updated from Wednesday, Jan. 27, with Thursday's Netflix stock movement, analyst commentary and other news related to Netflix competitors.)
The news prompted several brokerage firms to lift their rating on the stocks. As a result, shares of the company are soaring 21.5% on Thursday morning to $61.55. Earlier in the day the stock reached an all-time high of $63.85.
Analyst Barton Crockett of Lazard Capital Markets upped his rating to hold from sell, saying he was surprised that the company's churn, or the percentage subscriber cancellations, declined in the quarter.Churn fell to 3.9% from 4.2% during the quarter. Wedbush Morgan Securities also raised its rating to neutral from underperform and its price target to $60 from $50. The streaming movie and DVD-by-mail pioneer reached 12.3 million subscribers in during the quarter, after its biggest three-month gain in the 11-year history of the company. And Netflix expects to end 2010 with between 15.5 million to 16.3 million subscribers. During the quarter, Netflix earned $30.9 million, or 56 cents a share, a 36% rise from $22.7 million, or 38 cents, in the year-ago period.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV