Netflix uses frame-by-frame machine learning to decide what you really want to watch

Netflix Inc. isn't going to leave the success of its series and films to chance--and analysts say its stock should be rewarded. The company wants to be able to "combine great story telling and the great technological aspects," Chief Executive Reed Hastings told MarketWatch in 2015. "That's where we want to be." Netflix's use of convolutional neural network and proprietary algorithms, which is essentially deep machine learning used to analyze visual imagery, is a prime example of its approach. And it's just that approach that grabbed the attention of Wells Fargo analysts Ken Sena and Marci Ryvicker. They initiated coverage of Netflix NFLX, 1.44% on Wednesday with an overweight rating and a $230 12-month price target, which is the highest price target among analysts covering the stock, according to FactSet.