“The break from the saucer provides a short-term trading opportunity to the top of the open gap made in early April at $90 to $101.79. I’d prefer to buy NFLX under $80 for that trade, but long-term investors may want to go for this hot issue now, at the market, for the potential offered by this combination of leaders in the world of household entertainment.”
Well, I admit to a gross underestimate of the potential power of this company. In just 10 months the stock has more than tripled, and on Oct. 10, Needham & Co. initiated coverage with a target of $425. Analyst Laura Martin said she believes Netflix to be “one of the best ways to play the global growth of broadband penetration.”
I’d like to own Netflix under $250 on a general market correction, so that is our buy under price for this dynamic performer.