Northern, WI 04/16/2013 (usastockreport) – BTIG Research had initiated a coverage of Netflix, Inc (NASDAQ:NFLX) (Closed: $176.50, Up by 1.91%) and said that in the forthcoming years its subscriber base is going to see a rise and its profitability will exceed expectations. They also set a buy rating for Netflix shares with a target price of $250. The Los Gatos, California-based Netflix gained close to 5.3 percent and right through April 12 the shares had gained 87 percent. The company is upgrading its bandwidth. This upgrade will help in the streaming of television shows and movie streaming as well. It will improve content leverage said a prominent analyst.
Change for the better
The company is all set to benefit from the cataclysmic changes it has made. Reed Hastings the Chief Executive officer of Netflix said that its viewership has been rising steadily and that in January, its subscribers had watched in excess of 4 billion hours of content. The company’s first quarter earnings are scheduled to be reported on April 22. Hastings had created a veritable storm when he first posted company results on his Facebook page. The U.S Securities and Exchange Commission had closed an investigation around Hastings and Netflix just over a week back. Companies have now been officially permitted to post company results on social networking sites.
Regulators have said that the only condition for doing so is that investors have to be informed about the post first. While the investigation was in progress Hastings had maintained that he had not done anything wrong and the intent of his post had been only to share information with Netflix subscribers.