Why Netflix (NFLX) Is Up Today

NEW YORK (TheStreet) -- Netflix (NFLX) gained 5.4% to $401.63 Tuesday on news that it is in talks to bring its service to more European countries.

According to The Wall Street Journal, Netflix is currently in discussion with U.S. entertainment companies about licensing popular content in France, Germany, and other European countries.

Netflix could not be reached for comment.

The media streaming company is also reportedly in talks with the French government about launching in the country by the end of 2014. French law prevents streaming services from showing movies until three years after their theatrical debut. Video services also usually have to finance film production in the country if they hope to offer their services there.

Amazon (AMZN) and Sky Deutschland currently operate streaming services in Germany. Canal Plus, a division of Vivendi, offers a similar service in France.

TheStreet Ratings team rates NETFLIX INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETFLIX INC (NFLX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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