Are Investors Too Giddy About Netflix?

NetflixThe better-than-expected Q1 profit and subscriber growth results that Netflix reported last night thrilled investors. But it hasn’t settled the debate among analysts over whether the streaming company is just beginning to soar, or is about to peak. Netflix’s stock price is +135% so far in 2013, including today’s 24% jump to about $216 in late morning trading. Fans say that the Q1 numbers indicate that CEO Reed Hastings’ plan is working, and there’s no telling how far Netflix can go if it becomes a must-have service for people who want to stream TV shows and movies in the U.S. and abroad. For example Janney Capital Markets’ Tony Wible raised his target price this morning to $250 from $190 noting that Netflix’s deals to secure original content “may ultimately discourage competition.” Susquehanna Financial Group’s Vasily Karasyov raised his target to $224 from $107 saying that in summer 2014 Netflix could raise its $7.99 a month subscription price “which will provide additional support to the stock.” (more…)

This article was printed from