Netflix Continues Higher (NFLX)

Netflix, Inc. NFLX bears are hurting this morning, after the company reported strong earnings, and raised its guidance for the first quarter of next year. The company received several analyst upgrades following the earnings report, with Caris & Co. raising its price target to $224, while Canacord Genuity's raised its price target to $250. In a research note, Canacord Genuity analyst Heath Evans wrote, “Netflix's Q4 earnings and guidance demonstrate the kind of accelerating growth we think is necessary to drive additional upside in the stock price over the coming year." Evans went on to say, “the mainstream adoption of Netflix-enabled devices like connected televisions, Blu-ray players, and smart phones, along with improvements in the streaming user experience and additional content.” Netflix said it expects to end the first quarter with 21.9 million to 22.8 million subscribers, and have revenues of $684 -$704 million. Net income is expected to be in the range of 90 cents to $1.13 a share. Wall Street expects earnings of 87 cents per share on revenues of $675.7 million. Netflix for the fourth quarter earned 87 cents per share on revenues of $596 million, compared to estimates of 71 cents per share on revenues of $596.4 million.