Netflx (NFLX) shares are up 14% so far today, after the dvd
rental company reported profits rose 45% to $22.7 million, or 38 cents a share,
up from $15.7 million, or 23 cents a share in the same period last year.
The company added 718,000 customers in the final three
months of 2008, which gives the company just under 9.4 million customers
through December, a 26 percent gain from 2007. The company's revenue rose 19
percent to $360 million, beating consensus estimates of $354 million.
The Bottom Line
It appears that Netflix is beginning to distinguish itself as another company
in the internet space that can ride through these recessionary times in good
shape. The stock is about $6 below all-time highs. If the stock does pull back
at all, we see the $27 area as a potential area to watch. We do not currently
rate this stock, but it is a name we are going to add to our internet gauge
Netflix (NFLX) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well
as a detailed explanation of our ratings