Netflix's stock drop after results despite upbeat analyst calls

Although Netflix Inc. investors may not be completely satisfied with the streaming video service giant's fourth-quarter results, especially considering the massive run up in its stock price that past few weeks, but Wall Street analysts were nearly unanimously upbeat. The stock fell 2.5% in premarket trade Friday, as Netflix beat profit and net subscriber additions expectations but missed on revenue. Of the analysts surveyed by FactSet, 14 raised their stock price target while 1 lowered their target. That lifted the average analyst price target to $402.61, which is 14% above Thursday's closing price, from $391.31 just before the results. The most bullish analyst is Justin Patterson at Raymond James, who reiterated his strong buy rating and raised his price target to $470 from $450, saying Netflix's global distribution advantage is becoming increasingly clear. Even the most bearish analyst, Wedbush's Michael Pachter, reiterated his underperform rating, citing troubling cash burn and concerns over subscriber growth deceleration, but raised his price target to $165 from $150. Netflix's stock had rocketed 51% from Dec. 24 through Thursday, while the S&P 500 rallied 12% over the same time.

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