Netflix is a Screaming Buy Under $250

by Sam Collins | October 14, 2013 7:14 am

Netflix (NFLX[1]) — On Dec. 5, with the stock trading at about $87, following the announcement of an exclusive U.S. subscription TV service for Walt Disney (DIS[2]), I recommended it[3], saying:

“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.

NFLX Chart
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  1. NFLX:
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  3. I recommended it:
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