Netflix' rampaging stock on Tuesday smashed through the $200 threshold for the first time since 2011, underscoring its status as the darling of Wall Street.
It appears that this hard-charging stock can't be stopped -- for now. Yes,some bears believe that this stock is a bubble which will burst eventually, leaving a messy story for securities analysts to rationalize at some point. Netflix has disappointed investors before, they contend, and insist that the projections for its growth are not sustainable.
During Tuesday's stock-market activity, Netflix had surged to $216, up 25%, following favorable earnings numbers on Monday. Wall Street was impressed by the increases in new customers and the underlying notion that Netflix, of all companies, could ultimately challenge AMC and other original content-providers.
Netflix' House of Cards was viewed at first as a curiosity and an experiment. But the buzz of the show has shown skeptics that Netflix had hit on something that other media outlets were missing.
The company is showing the naysayers that it has the wherewithal to woo more subscribers, whether they want to pay for new programs or popular fare from television and the movies. This is perhaps Netflix' most shining accomplishment. It is a multidimensional revenue machine now.
Wall Street also approves of Netflix' once-controversial international expansion strategy. This is another area in which Netflix executives are getting the last laugh on the stock-pickers who once seriously questioned the company's plan.
As long as your stock is zooming, you can enjoy having the last laugh.
Now, Netflix has to face the harder part: keeping its shares at astronomical levels.