Netflix Shares Hit Record High Ahead of Stock Split, Earnings

Netflix’s (NFLX) shares popped nearly four percent Tuesday to an all-time high of $707.61. The new record comes a day before the company splits its shares on a seven-for-one basis, and two days before it will report earnings. Goldman Sachs increased its target price to $780 from $620 and reiterated the stock's buy status on huge growth expectations. By 2020, analyst Heath Terry said that the Los Gatos video on demand service's total addressable market could more than double to 460 million -- with 112 million international subscribers -- and with 24 percent global penetration and 65 percent domestic penetration. Shares in the online video streaming and content shop have been on a tear, roughly doubling so far this year. Netflix is now worth north of $40 billion. However, Netflix’s profits were slim in its last quarter, generating $23.70 million in net income off $1.57 billion in revenue. Netflix is, and has invested heavily in original content, and international expansion.