Netflix CEO Reed Hastings split the company in two in 2011, thinking that the growing ubiquity of high-speed Internet access would soon mean the end of their disruptive DVD mailing business. But neglecting the DVD business proved to be a mistake, and Netflix reversed course.
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Here are the biggest calls on Wall Street on Wednesday:
Evercore ISI raised its price target on Netflix to $380 from $350
Evercore said it thinks Netflix is showing “improving” profitability trends.
“Overall, we think the debate could be slowly shifting somewhat away from accelerating subscriber growth and towards improving profitability trends, as shares have traded range-bound over the last six months despite two consecutive quarters of record-setting subscriber additions. While 2Q global subscriber addition guidance of 5M (down ~10% y-o-y) looks acheivable (despite a price increase in the US), we expect focus on the release could center on 3Q expectations to get a more accurate sense…