Why Netflix Stock Jumped 5.1% Today
The stock market had a sunny day on Thursday as the S&P 500 index gained 1.8% and the Nasdaq Composite bolted 2.5% higher. However, Netflix (NASDAQ: NFLX) left the broader market far behind, closing the trading session 5.1% higher. The digital-media veteran can pin this amplified jump on a rare double upgrade from a Wall Street analyst firm.
Analyst Kenneth Leon, from the market research firm CFRA Research, upgraded Netflix shares all the way from sell to buy, lifting his price target for the stock from $225 to $310 per share.
Leon's reasoning rests on a deeply entrenched business moat, as rivals will have a hard time catching up to Netflix's profitable growth on a global scale. Furthermore, the new ad-supported subscription plan and password-sharing crackdown efforts should support Netflix's subscriber counts and revenue streams in the long term.
Source Fool.com
