Netflix stock has nearly doubled over the last 12 months to levels of about $1,270 currently. The rally has been driven by a crackdown on password sharing and the expansion of its advertising-supported tier.

Netflix and YouTube — aren’t competing for a single spot. Instead, they’re playing different games," says MoffettNathanson Senior Analyst Rob Fishman. "As Netflix ramps up its advertising revenues combined with underlying strength in the core business,

In its second-quarter earnings report, the streaming giant disclosed operating income of $3.8 billion and a margin of 34.1 percent, up double digits from a year ago.