Thursday, April 15, 2021

NETFLIX SHARES SOAR 42 PERCENT

January 24, 2013 by · Leave a Comment 

Volatile Netflix shares were up a sensational 42.22 percent or $43.60 to $146.86 at the close of trading on the Nasdaq today (Thursday) following a better-than-expected quarterly report. Anders Bylund at the MotleyFool.com said that the through-the-roof rise of the stock represented “the kind of pop you’d expect from a generous buyout, not just a regular earnings report.” TV business commentator Jim Cramer told TheStreet.com that he expects the stock to continue to soar. But Eric Wold, a media analyst with B. Riley Caris, maintained that the quarterly results represent merely a short-term victory and that competition will continue to hold back domestic subscriber growth “which would cause a reverse in operating leverage and negatively impact the company’s ability to self-fund its international growth plans.” Wold maintains a “sell” rating on Netflix. Michael Pachter of Wedbush Securities noted that Netflix faces enormous costs to provide attractive content. “Therein lies the rub,” he wrote. “Netflix can only improve the typical viewing experience for next year by increasing its content spending, negatively impacting profitability further.” And the website SeekingAlpha.com concluded: “We believe that Netflix is going to find itself surrounded with streaming behemoths in the near future, and this could pose a significant threat to its growth outlook.”