Shares rise on bullish analyst report
Newly-minted Emmy winner Netflix is enjoying even bigger rewards on the stock market this week.
Shares of the Los Gatos, Calif., home entertainment giant are hitting record levels after a Wall Street analyst predicted the company's international subscribers will be larger than expected when it reports its quarterly results this month.
Netflix's stock climbed 4.27 percent to reach an all-time high of $322.48 as of 2:45 p.m. ET on Tuesday. It opened trading $314.94. A year ago, the company closed the day with shares hitting $56.05.
At the time, Netflix was still shaking off the damage done by subscriber losses that greeted its decision to raise prices and failed attempt to spin-off its DVD-by-mail business into a separate company called Qwikster.
Since then, a lot of things have gone right for Netflix. In particular, it has earned attention and acclaim for original programming that includes “House of Cards” and a new season of “Arrested Development.” It has signed deals with DreamWorks Animation and the Walt Disney Co. to bolster its family entertainment offerings.
And it also recently inked pacts with two cable operators, Virgin Media in the United Kingdom and Com Hem in Sweden, which expands its foreign footprint.
The latest rise in stock prices is being attributed to a note by MKM Partners’ analyst Rob Sanderson. He raised his target on Netflix from $285 to $370 while maintaining a “Buy” rating and predicting that the company's leadership had earned investors’ confidence.
Netflix currently has nearly 38 million streaming customers around the world, giving it a healthy lead over its main competitors like Amazon and Hulu. Tuesday's stock price shows who wears the crown.