Netflix Stock Soars 16 Percent a Day After Earnings

DOWN: Reed Hastings

Netflix posts a $5 million quarterly loss -- its first since 2005 -- even as the company's subscriber base grows to 26 million and CEO Hastings' pay jumps 68 percent to $9.3 million for 2011.

The stock touched an all-time high as Wall Street digested quarterly results and remarks by CEO Reed Hastings.

Shares of Netflix surged to an all-time high of $395.63 on Thursday before closing 16 percent higher to $388.72. The gains came while the broader markets sunk.

The catalyst for the climb was a strong earnings report on Wednesday, when Netflix said it earned 79 cents per share while analysts expected 66 cents.

Tony Wible of Janney Capital Markets called Netflix's metrics "flawless" in a note to clients on Thursday.

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In a letter to shareholders on Wednesday, Netflix CEO Reed Hastings also hinted at new pricing tiers in the works, which analysts presume will lead to gains in revenue, profit and margins.

"DVD is holding impressive margin levels, and international losses are moderating faster than expected," Wible wrote. "More importantly, we are seeing signs of potential future price increases, which is core to our thesis."

Wible reiterated his "buy" rating on the stock and said fair value is $450 per share.

Hastings also said a new URL will be used for the DVD side of the business, and some speculate it could mean Netflix has designs on selling DVDs in the future.