NETFLIX AUGURS RALLY

Results boost tech

Netflix stock hit a 52week high in extended trading on Monday after the video streamer’s first-quarter profits and revenue beat Wall Street expectations.

The strong performance by Netflix, the first tech company to report firstquarter results, is seen as a bellwether. A strong performance could reignite a tech rally, some said.

The tech-heavy Nasdaq is up 18.6 percent over the past 12 months — better than the 15 percent rise for the Dow Jones industrial average and the 13 percent uptick for the S&P 500.

The one blemish in the first quarter for the Reed Hastings-led company was that it fell short of forecasts for subscribers growth — although the 4.95 million new subs left it just shy of the 100-million subscriber level.

Wall Street was expecting 5.27 million new subscribers.

In the quarter, Netflix, based in Los Gatos, Calif., reported profits of 40 cents a share, demolishing last year’s 6 cents profit. Wall Street had forecast 37 cents.

Revenue in the three months ended March 31 grew 35 percent, to $2.64 billion — matching expectations.

In an earnings call, Hastings, the company’s chief executive, repeated his refrain about not sweating the particulars of any one quarter, but appreciating the global adoption of video streaming in general.

He recalled investor fears a few years ago that Netflix — like AOL before it — would hit “the 30-million sub wall.” But now he’s “super-excited” about Netflix’s signing up its 100 millionth customer over the coming weekend.

Hastings also addressed the issue of market saturation, citing YouTube’s announcement in February about users racking up more than 1 billion hours of video viewing every day.

“We’re about 1 billion a week — so we’ve got a long way to catch up,” he said.

Netflix shares were trading at $149.31, up 1.4 percent, at 7:30 p.m. — after adding 3 percent, to $147.25, in regular trading.

Michael Graham, managing director and senior internet analyst at Canaccord Genuity, told CNBC’s “Closing Bell” on Monday that he thinks Wall Street is bullish on Netflix’s outlook.

“[T]he guidance for subscribers for Q2 were ahead of where our estimates were, where consensus was,” he said.