Netflix, Inc. (NASDAQ:NFLX) reported a rather disappointing quarterly report few days back, due to which the share prices dropped by more than 25% in after hours. The company’s stock price took a nose dive from around $450 per share to around $330 per share. Firsthand Capital Management’s Kevin Landis shares his optimistic outlook about Netflix on CNBC, in spite of it’s recent slump.
Netflix, Inc. (NASDAQ:NFLX)’s poor quarter was attributed to the miss on estimated new subscriber addition. Netflix claimed to add 3.7 million new subscribers worldwide in the quarter, whereas the company could add only 3 million. Also, new subscriber addition in US dropped by 300,000 year-over-year, which was another big concern. Netflix blamed the increased subscription fee for the miss.
Landis mentioned that he talked himself out of the Netflix, Inc. (NASDAQ:NFLX) stock. He said that he is holding onto some stocks right now.
“I have talked myself out of that stock. […] We are in it a little bit, but I have to tell you most of the time when I am looking at that stock and I am looking at that chart, I spend most of my time kicking myself,” Landis said.
Landis added that the best opportunity to get hold of Netflix, Inc. (NASDAQ:NFLX) stock was, when the company decided to botch the DVD business to get into new businesses, which made many consumers unhappy. He feels that the last quarter has reopened the doors for investors to buy Netflix, Inc. (NASDAQ:NFLX) stock.
“[…] It’s such a great story that when it does go on sale it hardly looks like a sale and people who come out of woodwork making all this great arguments to say, it’s still really expensive. The answer is yeah it is expensive, but again look at the market cap and look at the space they are playing in. Look at this great position they have got,” Landis talked about the positives of Netflix, Inc. (NASDAQ:NFLX).
He feels that Netflix, Inc. (NASDAQ:NFLX) is the place to be right now. Many analysts rated Netflix, Inc. (NASDAQ:NFLX) as a $600 stock. Landis did not respond directly on whether he thinks if Netflix is a $600 stock or not.
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