Quarterly Earnings, Online Rental | featured news

Netflix stock is on its way to its biggest one-day gain since the video subscription service went public more than a decade ago. The stock had climbed $38.40, or 37 percent, to $141.66 in early afternoon trading Thursday as investors celebrated a fourth-quarter earnings report that Netflix Inc. released late Wednesday. Earlier in the session, the shares hit a new 52-week high of $149.17.

Netflix Inc reported an increase in third-quarter revenue that beat analyst expectations but said DVD subscriptions would sharply decline in the fourth quarter, sending its shares down sharply.

Netflix Inc. lowered its expectations for U.S. subscribers for the third quarter by 4 percent on Thursday, just weeks after separating its DVD and streaming services, which increased...