Netflix users and investors may have a hard time remembering that the company still mails out DVDs in small red packages, or the public relations disaster in 2011 that had subscribers leaving in droves. After sinking millions into original content and developing hit shows such as "House of Cards," Netflix became the past year's best performer on the S&P 500.
Netflix stock increased nearly 300 percent this past year, and now investors must decide whether the media company's outperformance can carry into 2014. Raymond James' Aaron Kessler told CNBC on Tuesday that the stock's current levels—trading at around $365 on Tuesday—has priced in much of the company's upcoming good news.
"We do think it's a little stretched near term," Kessler said on "Squawk on the Street," going on to reference Netflix CEO Reed Hastings' statement crediting the stock's rise to "euphoria." "We're not sure if it's quite euphoria, but at current levels you're trading at about 80 times earnings on 2014 numbers. So we think Netflix is pricing a lot of good news at current levels here."