Netflix’s big game is just getting started

In show business, you’re only as good as your latest hit. Those numbers broke previous streaming records for NFL games, and Netflix pulled off the event without the major technical glitches that marred last month’s live boxing match between Mike Tyson and Jake Paul. That would be the most new subscribers during the year-end period ever save for last year’s fourth quarter, when its crackdown on password sharing helped boost additions to 13.1 million in that period. In a report on Monday, Justin Patterson of KeyBanc Capital acknowledged that the stock was in a “valuation danger zone," but added that the company’s strong operating profits relative to other streaming peers “provides ample flexibility for Netflix to invest in growth, whereas competitors must increasingly weigh tradeoffs between growth and profitability." And Robert Fishman of MoffettNathanson called Netflix shares “massively expensive" in a report following the company’s last quarterly results in October, when the stock was about 26% below its current price.