Carl Quintanilla says that the UBS upgrade note on the Netflix, Inc. (NASDAQ:NFLX) stock is interesting particularly because it deeply examines consumer economics and how prepared people are to pay for streaming services.
The reaction comes in in a discussion on CNBC after the Netflix, Inc. (NASDAQ:NFLX) stock was upgraded by UBS on Monday from “Neutral” to “Buy”. UBS also greatly increased its 12-month price target on the stock from $370 per share to $565 per share.
“It’s interesting that the UBS upgrade is 70 pages long. It goes way, way deep into consumer economics and their willingness to pay for streaming which they argue bodes well given the kind of content Netflix is putting out there and the kind of reviews it is getting,” Quintanilla tells colleagues Julia Boorstin and Jon Fortt.
Apart from making interesting content well received by the public as Quintanilla points out, UBS says that the shares of Netflix, Inc. (NASDAQ:NFLX) are currently at an attractive range. Shares of the company closed $454.47 on Friday.
Netflix is also expected to report its latest quarterly performance tomorrow, April 15th. In a separate discussion on CNBC, Stacey Gilbert points out that Wall Street is expecting with about 60% probability that the shares of the company will move between 0% to plus or minus 10% by market close on Friday, April 17th, based on the price of call and put options for the stock.
Meanwhile, Jon Fortt agrees with Carl Quintanilla that the willingness of people to pay top dollar for premium content bodes well for Netflix, Inc. (NASDAQ:NFLX). He points out the company is still attracting subscribers despite having raised prices. Fortt also points out that HBO, which launched HBO Now at a $15 price point, reports people signing up for the service.
However, Fortt says that there are a lot of unknowns about just how much people are willing to pay for services like Netflix.
HBO CEO Richard Plepler was adamant, by the way, in a discussion that HBO Now is actually not about Netflix’s rise.
Carl Icahn’s Icahn Capital LP owned about 1.41 million Netflix, Inc. (NASDAQ:NFLX) shares by the end of the last quarter of last year.
I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said ‘I lost money by EXACTLY following your stock picks’. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.