Increase in subscription numbers was the news that Wall Street needed to hear with regards to Netflix, Inc. (NASDAQ:NFLX) if the stock was ever going to enjoy an uptick in the market. Netflix announced its fourth quarter numbers yesterday (you can read the transcript of NFLX’s earnings call here). A shift in strategy into international market seems to have done the trick in accelerating the subscription numbers. CNBC’s, Guy Adami, remains bullish on the stock maintaining that an impressive rally could see the stock clocking highs of $405 a share.
CNBC Dan Nathan on the other hand believes that on the ongoing momentum, Netflix, Inc. (NASDAQ:NFLX) could be an acquisition target for other companies looking to tap into the video streaming business.
“I am thinking to myself; this thing was somewhere in the mid-teens billion dollar market cap, could be an acquisition target for something like Amazon.com, Inc. (NASDAQ:AMZN). Finally because of that distribution because of that international growth and they do have some original content,” said Mr. Nathan.
Contrary to expectations, international growth seems to be picking up for the giant video streaming company which added 13 million subscribers last year with 4.3 million being added in the last three months of the year. Adami remains bullish on Netflix going forward reiterating that it is highly unlikely the stock will drop to the $320 mark with the $405 mark the next stop, which investors should use to recoup some of the profits.
Netflix, Inc. (NASDAQ:NFLX) is investing a lot on original programming as it looks to cement its position in the video streaming space amidst increasing competition in the space. A push for international growth is one of the things that Pete Najarian believes could result in a further increase in the company’s subscription base at the back of unveiling of more original content.
“When you talk about future growth I look at if they can add 8 million subscribers in 2015 internationally, that is going to be huge along with getting U.S subscribers as well,” said Mr. Najarian.
Despite remaining bullish on the stock, Najarian maintains a $405 a share mark would be the perfect mark for anyone looking to enter a long position on the stock.
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