Netflix Shares Surge 17 Percent
Wall Street is cheering a healthy quarterly report delivered a day earlier.
Shares of Netflix surged 17 percent on Wednesday as investors and analysts cheered a robust quarterly earnings report released a day prior.
One analyst, Rich Greenfield of BTIG, went so far as to say on CNBC Wednesday morning that other entertainment entities were envious of Netflix.
"I think most content creators would be jealous to have that breadth of content that Netflix has," he said on the show, Squawk on the Street. "They're going to have more pricing power over time, and they'll do it from a position of strength."
Netflix reported Tuesday after the closing bell that it earned more profit than expected and that it also narrowly exceeded revenue predictions.
But mostly it was the subscription numbers that impressed Wall Street, given that three months ago Netflix offered weak guidance in that regard. The company added 4.33 million new subscribers in the final quarter of the year, about 400,000 more than most analysts had predicted.
The company closed out 2014 with 57.4 million subscribers worldwide.
The stock immediately began to rise after the closing bell on Tuesday and it continued its ascent on Wednesday. By the close of trading Wednesday, shares had gained $60.48 to $409.28 and Netflix sported nearly a $25 billion market capitalization.
On Wednesday, Anthony DiClemente of Nomura upgraded Netflix to a "buy" and set a $500 target price on shares. He cited five reasons for his bullishness, including: "Netflix now believes it can fully complete its global expansion over the next two years while staying profitable."