AFTER HOURS ACTION: NETFLIX
After gains of more than 260% last year, if you thought this latest earnings report would drag down Netflix - you thought wrong.
The high flying stock flew even higher in extended trade; shares climbed about 7% after the company reported a quarterly profit that blew past expectations and gave a positive forecast for the current quarter.
The company's subscriber rolls surpassed the 20 million mark in the most recent period, rising to 20.01 million. It expects to have from 21.9 million to 22.8 million subscribers at the end of the first quarter.
What’s the trade?
The short interest in this stock is something like 25%, says Karen Finerman. I think we're looking at a classic short squeeze. If you’re not in this name, I wouldn’t touch it.
For me, $209.24 is the bogie, says Guy Adami. If it can break above that level then I’d go long.
I have a sell rating on the stock, says Michael Pachter of Wedbush Securities. I don't see evidence that their earnings are going to grow fast enough or dramatically enough to justify a $200 share price.
AFTER HOURS ACTION: QUALCOMM
Shares of Qualcomm spiked in extended trade, after the company raised its forecast for 2011 revenue and predicted robust second-quarter revenue as sales of its wireless device chips accelerated.
By the numbers Qualcomm said revenue rose to $3.35 billion in the December quarter, up 25 percent from the year-ago quarter. That was a bit above analysts' average estimate of $3.2 billion, according to Thomson Reuters.
The company said current-quarter revenue would climb to between $3.45 billion and $3.75 billion. Analysts on average had expected $3.1 billion.
Qualcomm estimated fiscal 2011 revenue between $13.6 billion and $14.2 billion. Analysts had expected $12.8 billion.