Netflix blew away Wall Street’s expectations a few weeks ago when it reported strong subscriber and revenue growth in the fourth quarter. The strong financial performance, including adding a record 8.3 million new subscribers, sent the streaming company’s stock skyward. On Tuesday, the stock touched an all-time high of $325.79, up 70% just this year (after gaining 55% last year).
The stock’s explosion even has some of the company’s strongest supporters now wondering if the price has moved too quickly. On Wednesday, influential analyst Scott Devitt of Stifel Nicolaus released a short research note downgrading Netflix stock to “hold” from “buy.” Devitt’s target price of $325 implies no further gains for investors this year.