Netflix (NFLX) posted a surprise profit to start 2013 and a powerful earnings beat this spring to catapult the streaming video giant to heights not seen since its 2011 heyday when the stock was flirting with $300 a share.
Part of the parabolic run has been a short squeeze, where bears betting against the pick have waived the white flag, but it’s more than that. From original show House of Cards produced in-house, to the deal with Disney (DIS) in December, to its largest-ever deal with DreamWorks (DWA) just weeks ago, Netflix has gotten serious about content and now boasts 30 million U.S. subscribers.
Whether the run lasts, however, is another question. Analysts at Bernstein Research think the run is overdone, and have given the stock an “underperform” rating recently with expectations that the stock will slump from more than its current price of roughly $210 a share to $180 in the next year.
So while the pick is No. 1 in the first half, keep your eyes peeled for what lies ahead.