Both Netflix, Inc. (NASDAQ:NFLX) and Delta Air Lines, Inc. (NYSE:DAL) were analyzed by CNBC’s Fast Money traders yesterday, and there was mixed reaction towards both companies as to what their recent activity and results will mean for their stock price short and long term.
Beginning with Netflix, Inc. (NASDAQ:NFLX), which in a bold move on Tuesday acquired the exclusive rights to the upcoming Batman drama series Gotham from Warner Bros. ahead of its premier on FOX later this month, analysts were collectively impressed with what the company has done, while admitting that the valuation was high, and probably near its peak.
Analyst Pete Najarian feels the stock is in a pause state, and that a pullback is coming, which could provide a new opportunity at that time to get on-board. He said international growth, particularly in Europe, will be key to the stock growing beyond its current heights. Netflix, Inc. (NASDAQ:NFLX) closed at $477.39 yesterday, falling more than 2% from a record high of $487.60 earlier in the day.
Delta Air Lines, Inc. (NYSE:DAL) meanwhile had a rough day yesterday, falling 2.66% to close at $38.82 after they raised their per-gallon fuel price projections to $2.95 from $2.90, while lowering their operating growth margins for the next quarter as a result.
The analysts however were generally less concerned with the fuel prices than they were with the fact that Delta Air Lines, Inc. (NYSE:DAL)’s capacity on international flights took a large drop in the last quarter, to 88.7% from 91.5% in the year-ago quarter. Despite that, domestic capacity ticked up to 87.6% from 87.3%, and traffic on both domestic and international flights was up on the strength of 2.7% greater passenger-carrying capacity.
U.S airline stocks have collectively had a good run over the past year, and two of the Fast Money analysts were still bullish on them as a whole.