True, as we noted recently, the last time Netflix (NFLX) stock went on this kind of tear, it crashed and burned in an epic meltdown. But that doesn’t mean NFLX has flown too close to the sun just yet.
For one thing, Netflix is dominant in its industry, profitable — and growing rapidly. Wall Street expects earnings per share to quintuple this year — to $1.49 from 29 cents a year ago. EPS is projected to more than double in 2014.
NFLX also has technicals on its side, scoring a 10 out of 10 for price momentum, according to Thomson Reuters Stock Reports.