Netflix’s deal to become the new home of hit wrestling show “WWE Raw” and other WWE shows in the US and abroad is a positive one, says Andrew Uerkwitz, analyst at Jefferies, in a research note. The streaming giant’s deal, a 10-year deal valued at more than $5 billion, expands the live content offerings on Netflix but doesn’t stray far from its scripted content roots, says the analyst. “A worthy experiment to determine if the WWE die-hards will convert to subs and show up for the live broadcast, but also with higher delayed watching or re-watch value than live sports given its scripted entertainment/story value as well,” says Uerkwitz. He adds that the additional optionality for behind the scenes spin-offs and expansions outside the US is interesting as well. Shares rise 9.8% to $540.40 in premarket trading.

By Brian Swint Netflix shares are surging after the company reported earnings on Tuesday after the bell. The stock gained 10% in premarket trading to $539.62 following strong subscriber growth and revenue gains. Coming into the session it was already up 34% over the past year and 20% in the last three months. However, Wall Street analysts were cautioning against euphoria. Deutsche Bank downgraded the shares to Hold from Buy, even though it also raised its price target to $525 from $460. Analyst Bryan Kraft said that Netflix’s leadership position is “fully priced into the stock at these levels.” Needham’s Laura Martin kept a Hold rating on the stock, without giving a price target. She recommends investors consider media stocks more focused on advertising revenue because spending on advertising will pick up this year in the absence of more Hollywood strikes and with elections coming up. Oppenheimer analysts led by