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Netflix Inc. shares jumped by more than 22 percent on Thursday after the company reported better-than-expected quarterly results.
The Los Gatos, Calif.-based video streaming and DVD rental company said that net income was $41 million in the fourth quarter on revenues of $876 million. While profits were slightly lower than the same quarter last year, revenues far surpassed last year’s results, a product of the company’s fast growth.
Some analysts say that Netflix’s massive jump Thursday had more to do with the number of naked short sellers who previously bet on its shares to decline. As the value of shares increased, short sellers rushed to buy back positions to stem losses, which further bid up its stock price.