2 Double Digit Gainers: Netflix, Inc. (NASDAQ:NFLX) & Vringo, Inc.(AMEX:VRNG)

While the broader markets are trading weak on Monday, there are couple of stocks which are showing up move after the solid week.

Netflix, Inc.(NASDAQ:NFLX) shares are showing another solid start for the new week after soaring over 22% in the past week. So what’s driving NFLX all off a sudden? After the last week’s optimistic note by an analyst at Citigroup, this morning Scott Devitt at Morgan Stanley decided to rerate the stock upwardly and now rate the stock at Overweight, from its Equal Weight earlier.

Moreover, the analyst now set a price target of $85 for NFLX, which is almost a 30% jump from Friday’s closing price of $66.56. Well, the stock has already jumped over 10% this morning on hefty gain.

In a not, the firm provided several bullish point on the company. Firstly, as per them, Investors are over reacting to the company’s threat  to the company from Amazon.com. In fact the firm contends the retailer’s streaming video service is no threat to Netflix’s U.S. business.

Moreover, commenting on the valuation, Devitt said that the company’s local business alone is enough to support the stock at current levels. He adds that “any incremental decrease in churn will drive much lower revenue volatility as well as margin expansion.” And he says that “while international is driving the consolidated business to breakeven levels … there is real option value in the global story.”

The stock is up 10.22% to $73.36, rebounding almost 38% from its 52-week low of $52.81 (Aug 3, 2012).

Moving away from Netflix, Vringo, Inc.(NYSEAMEX:VRNG) is another stock which has been showing massive buying ever since the company won a court ruling against Google Inc(NASDAQ:GOOG) last week. Now the court has signaled Google to negotiate a settlement with VRNG before the trial date on October 16.

Well, the latest fight is yet to end, the company has decided to sue another company for patent infringement as on Monday the company said it was suing the UK subsidiary of ZTE Corporation   for infringement.  

Will VRNG Hit $10 Before The case Date? Find Out here

It further said “The filing of this action in the United Kingdom is an initial step in Vringo’s global licensing and enforcement program in the telecommunications sector.”

Last week, the stock was up 58% and made an all time high of $5.55.