Netflix, Inc. (NASDAQ:NFLX) launched its new series’ Daredevil’ to its subscribers on Friday and the online streaming company also received upgrade from Citigroup Inc (NYSE:C), which pushed the stock higher on Friday. Netflix, Inc. (NASDAQ:NFLX) stock went up by more than 3% on Friday. Netflix, Inc. (NASDAQ:NFLX) stock also crossed the $450 level on Friday. FM Traders Guy Adami and Steve Grasso talked on CNBC about Netflix, Inc. (NASDAQ:NFLX) stock and his outlook for the streaming company.
Citigroup has upgraded its ratings for Netflix, Inc. (NASDAQ:NFLX) from ‘Neutral’ to a ‘Buy’ rating. Citi also raised the price target by a whopping $86 from $439 to $525. Netflix, Inc. (NASDAQ:NFLX) stock also received upgrades and increased price targets from many other firms in the last few weeks. This clearly shows that most of the analysts have positive outlook for the streaming company. Citigroup has cited Netflix’s new contents like ‘Daredevil’, international growth and the recent pull-back as the reasons behind its upgrade.
Netflix is all set to report its earnings report on Wednesday after the bell. YTD the stock has went up by more than 30% and with this momentum, if the earnings meets or exceeds the expectations of analysts, the stock will soar much higher.
Adami said that the tactical trade has almost been correct. He pointed out that he has set the bottom limit for Netflix stock at $400 and he added that stock went down very close to it, till $409. Adami said that the stock has bounced from that point and is trading well above that limit. He feels that $440 is the pivot for Netflix stock. He mentioned that the stock has exploded through $440 on Friday. He thinks that stock is ready to go much higher from here.
“The tactical trade has almost been right. […] on the downside , we print $400. I think it got close. I think it traded down to $409 and change. It has obviously bounced now. I believe that $440 is your pivot. It obviously exploded through that today (Friday). How would you trade it? I think it is ready for the next [..] higher. Your stop out level is $440 on the downside. I think it has very well defined risk reward trade. A lot of people say, everybody is underestimating their international growth. That’s probably true. But in terms of technical, stay long against $440,” Adami said.
Grasso said that content is the king and Netflix is ready to roll out a lot of its contents in this quarter. He feels that there is a resistance for Netflix stock at $486. But he thinks that this stock is definitely going towards $500.
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