The stock market experienced slight gains Wednesday on a strong day for the dollar, while oil fell 2.7%. The S&P 500 Index wafted up 0.2%, the Dow Jones Industrial Average surged 0.1% and the Nasdaq Composite was 0.3% higher by day’s end.
Here’s what shook up these stocks after the bell:
Netflix, Inc. (NFLX)
Netflix shares were exploding to new all-time highs following the company’s impressive fourth-quarter earnings report.
The online streaming video company reported earnings of 15 cents per share, coming in 2 cents ahead of analyst estimates. Revenues also came in over the bar, tallying $2.48 billion versus an expectation for $2.47 billion.
But what really excited investors and analysts alike Wednesday night: subscriber totals.
Netflix had forecast 5.2 million total subscriber additions for the quarter, but instead brought in more than 7 million. That was bolstered by a huge push on the international front, adding 5.1 million subscribers outside of the U.S. That said, domestic subscriber additions of 1.93 million were better than expectations for 1.56 million, too.
For the full year, Netflix’s subscriber additions accelerated, with NFLX packing on 19 million net subscribers in 2016, versus 17.4 million in 2015.
Helping Netflix achieve those additions was a big push toward expanding its original content, which will continue this year as the company plans to release more than 1,000 hours of its original programming.
In response, Netflix stock saw a host of upgrades, including from Credit Suisse, Citigroup and Goldman Sachs.
NFLX stock was up more than 8% in Thursday’s premarket trade.
Tesla Motors Inc (TSLA)
TSLA shares were up solidly on Thursday in response to a Morgan Stanley upgrade.
Morgan Stanley has turned up its rating on shares from “Equalweight” to “Overweight,” and lifted its price target from $242 to $305. The new PT implies 28% upside from Wednesday’s closing price.
Morgan Stanley analyst Adam Jonas upgraded Tesla thanks to new Model 3 estimates. Specifically, MS is adding 75,000 units to its 2018 estimate, and 100,000 units to its 2020 estimates. Those estimates “combined with the out-year impact adds a combined $81 to our Tesla target.”
“Small offsets from the 4Q delivery pre announcement and higher capex takes our target to $305. Excluding the value of Tesla Mobility ($76/share) our price target would be slightly below the current share price. Over 100% of the upside to our $305 price target can be attributed to the value we ascribe to Tesla Mobility.”
But the analyst also pointed out that he’s still not optimistic about the SolarCity acquisition, which he believes adds “zero value.”
TSLA shares are up 4% this morning.
CSX Corporation (CSX)
CSX shares soared Thursday on news that a key figure that just departed Canadian Pacific Railway Limited (USA) (NYSE:CP) is now interested in a new railroad opportunity.
Hunter Harrison, who left Canadian Pacific on Wednesday, will now join activist investor Paul Hilal to try to install Harrison on CSX’s management team.
“Hilal’s fund, Mantle Ridge LP, has raised more than $1 billion for a single investment, according to a person familiar with the matter. Investors have committed to locking up their money in the fund for five years, the person said.”
Hilal previously worked at Pershing Square Capital Management.
Harrison has helped CP lower its operating ratio since joining management there in 2012. Prior to that, he worked at Canadian National Railway (USA) (NYSE:CNI).
CSX shares shot 18% higher in Thursday’s premarket trade.
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