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Netflix Inc won back Wall Street's affections on Thursday after adding more U.S. subscribers than expected in the fourth quarter, a rebound that prompted analyst upgrades and the company's biggest one-day stock jump in two years. The Los Gatos, California-based company's shares soared 23.5 percent to $117.40 in afternoon trading. Shares had dropped to a year's low of $62.37 on November 30.

Netflix’s stock rose by about 10% last week before falling lower, driven by rumors about potential acquisition by Verizon. While reports indicated that Verizon may be seriously considering the acquisition at around $4.6 billion, the company denied that it has organized any talks or meetings with Netflix. We think that Netflix will not sell itself at the implied price per share that results from $4.6 billion bid. For details see Verizon Would Have a Tough Time Acquiring Netflix which talks about why an acquisition at stated value is unlikely, be it by Verizon or another potential suitor Amazon. In general, several analysts including Trefis analysts see any acquisition as highly unlikely.

Wedbush analyst Michael Pachter says that increased content costs, a precipitous decline in subscribers, and a 'growth at all cost' mentality will continue to hurt Netflix in the future. Read this blog post by Don Reisinger on The Digital Home.

Despite recent troubles, Netflix is a major force on the Internet, accounting for 32.7% of peak U.S. downstream traffic, according to a new report.

Netflix is abandoning its widely panned decision to separate its DVD-by-mail and Internet streaming services because it would make them more difficult to use.

An analyst from Wedbush recently speculated that Netflix separated its DVD business to open doors for potential acquisition of the company by Amazon. Our price estimate for Netflix stands at $195, implying a premium of about 50% to the market price.

Netflix, DreamWorks reached a multi-year deal to give Netflix exclusive rights to first-run feature films and television specials for video streaming.

David Zaslav, CEO of Discovery Communications, called his company's licensing pact with Netflix an 'economic win' and also said there's a disconnect between the strong advertising market and the overall economic malaise.

The company’s decision to split into two businesses has customers complaining that it is treating them badly.

If you're a seasoned Netflix instant streaming user, it may surprise you to know that the company has always had an official policy of limiting the number of simultaneous streams you're using. Now, Netflix has made that policy more concrete by producing an error message if you attempt to access your streaming account when it is already in use.