Netflix's stock closed at $116.01 on Jan. 26, the highest closing price since Oct. 24, 2011, after the company reported fourth-quarter earnings that exceeded analysts' expectations in addition to an increase in customers.
The company's stock rose shortly after it reported $53.736 million in additional revenues over the third quarter as well 610,000 new U.S. subscribers since the end of September. The quarter represented a turnaround for a company that previously suffered a massive customer exodus.
After the July announcement that Netflix was raising the rate on its DVD rental+Internet streaming option, customers began to flee. In the third quarter, Netflix lost 810,000 customers.
The stock price at Netflix declined for several months, hitting a low on Nov. 25, 2011, at $63.86 per share.
With the restoration of almost all of its lost customer base, Netflix stock is on the rebound although it's only worth about one third of its price in July when the stock price exceeded $300.
Netflix CEO Reed Hastings is confident in the company's recovery.
"We're really excited and pleased in our recovery," Hastings said in an interview with Bloomberg. "We've got a long way to go and a huge opportunity ahead."
The stock price closed Friday at $123.79 on the NASDAQ, up nearly 7 percent.
