Netflix shares have rocketed to an all-time high on Thursday after the company reported earnings that beat expectations.
In early trade on Thursday, shares of the streaming video company were up as much as 12% to around $109.75 a share.
On Wednesday, Netflix shares started trading at a new adjusted share price following a 7-for-1 stock split.
This year, Netflix shares have more than doubled and the company is the best performing stock in the S&P 500 by far, as the next-best performing S&P 500 member — Electronic Arts — has seen shares rise about 50%.
After the market close on Wednesday, Netflix reported earnings per share of $0.06, better than forecast, on revenue of $1.64 billion.
Netflix added 3.3 million subscribers in the second quarter.
The company also said it expects it will earn $0.07 per share in the third quarter and add 3.55 million subscribers.
Netflix did say that it expects to continue investing heavily in original content, and in a note to clients on Thursday, analysts at Bank of America Merrill Lynch said the company will spend about $5 billion on content in 2016.
In the second quarter, Netflix reported free cash flow of negative $229 million.
BAML added in its note, "The Netflix content engine is quickly becoming an overwhelming wall for competitors."
The firm has a "Buy" rating at $121 price target on shares.
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