Netflix: Upgrade-Palooza!

Netflix (NFLX) shares are skyrocketing today, after the company late yesterday posted strong Q4 results, with better expected forward guidance. The upside surprise has triggered a mass re-rating of the stock by the Street, triggering at least five analyst upgrades, plus a host of other estimate and price target revisions. At the core of the new enthusiasm: expanding gross margins, as more customers take advantage of the company’s streaming video service.

Here’s a look at the upgrades:

  • Youssef Squali, Jefferies: Upgrades to Buy from Hold, target to $65, from $52. “Q4 results show that Netflix’s momentum is stronger than ever, driven by excellent execution amid a very favorable competitive environment,” he writes. Squali says the company is seeing benefits from the popularity of its movie streaming service. He takes his 2010 EPS estimate up to $2.56, from $2.28.

Read the rest of this post on the original site

Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »