This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Prepare to Buy Netflix Before It Rises From the Dead

Stocks in this article: NFLX

By now, it's clear that Netflix deserves credit for the success AMC Networks (AMCX) has seen licensing the streaming service past seasons of shows such as Mad Men and The Walking Dead. Both companies acknowledge that many viewers decided to tune into the current seasons of these shows after discovering them on Netflix.

I'm not necessarily one for anecdote, but I do believe in synchronicity. Over the weekend, I discovered a show I never knew existed -- Louie, the FX show starring comedian Louie C. K. I am blowing through the first two seasons and plan to watch the current run on FX. I would guess, independent of my experience, thousands (maybe millions?) of others have had the same experience.

There are those words again - discovery and experience.

Pandora (P) set the discovery trend in music. Netflix likely just stumbled upon the phenomenon in video. But more power to them. Now they just have to leverage their ability to be a discovery service in more ways than one.

Netflix must also continue to do a better job creating an experience for its users. It's Reed Hastings' task to envision ways to make that happen. As I have rarely questioned his status as a visionary, I have confidence he will get it done.

Netflix, whether it admits it openly or not, has moved away from the strategy it invented -- buying up any and all streaming content a programmer is willing to sell. That's pretty much what (AMZN) is: a poorly focused smorgasbord of random content. I subscribe to both services and that's my experience.

I plan to give NFLX another several weeks to settle into another range. Once it does -- and that could quite possibly be closer to or even below $50 -- I intend to get long the stock via a buy-write strategy using weekly and/or monthly calls.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

At the time of publication, the author was long P.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs