Ahead of Netflix earnings, trader predicts a big rally in the cards

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Ahead of Netflix earnings, trader predicts a big rally in the cards $NFLX (via TradingNation)

The streaming company will release its first quarter earnings after the bell Tuesday. It heads into that report with its stock up a massive 36% so far this year, bucking the broader sell-off."The stock actually looks quite attractive, technically," Newton said on CNBC's "" on Tuesday.

"If anything, Netflix has become the new infrastructure play," said Newton. "Any sort of pullback in the stock down to $400 will make me want to take a look at buying into it -- $393 to $400 is an excellent risk reward to buy Netflix. So, I like it, I think it's going to push up to $480 in the months ahead and potentially up to $533 so it's one of my favorites technically on an intermediate term basis.

"They've been a huge benefactor of everybody staying at home," said Tatro during the same segment. "But the stock has already been priced in, in our opinion. This move, it's up 30% year to date. It's been a hiding spot for managers, and we honestly would take any strength after this announcement to be a seller of the stock if somebody invested in and owns this name here.

 

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TradingNation I’ll take the other side. Viewing doesn’t matter; subscribers do So more viewing by existing subscribers mean nothing Viewing by people who use friends’ passwords mean nothing International subscriber growth being hurt by a recession; now that means something

TradingNation P/E is insane. Great company and a great stock, but just way to expensive right now.

TradingNation I would certainly hope so. Everyone signed up who would or could sign up. Next quarter? Numbers should be flat.

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