Netflix Stock: Next Stop, $500?

(NASDAQ: NFLX) shares have nearly doubled over the past year, but that doesn't mean that there aren't some non-bulls out there who need convincing. Maybe they will listen to Baird analyst Vikram Kesavabhotla, who has upgraded the streaming service stock to outperform from neutral, impressed by its near-term prospects after last week's financial update. 

If you like a good plot twist -- and Netflix viewers probably enjoy a good plot twist -- Kesavabhotla's newfound love for the stock after Wednesday afternoon's second-quarter report is unique. The shares actually surrendered more than 10% of their value in the two trading days following the earnings release. 

However, the Baird analyst has his reasons and he's also boosting his price target from $340 to $500, implying 17% of near-term upside from current levels. Will Netflix recover from its initial earnings dip? Let's take a closer look at the challenges and opportunities that the wold's most popular premium streaming video service faces on the potential path to $500.

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Source Fool.com