This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Netflix Stock Hits High on Growth

Stocks in this article: NFLX

(Netflix article updated from Wednesday, Jan. 27, with Thursday's Netflix stock movement, analyst commentary and other news related to Netflix competitors.)

SAN FRANCISCO ( TheStreet) -- Netflix (NFLX - Get Report) is proving that it has room to grow, announcing on Wednesday that it added more than 1 million new subscribers during the fourth quarter.

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs