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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Netflix To $100, But Should You Buy The Stock?

NEW YORK ( TheStreet) -- Breaking news. Shocking development. Coming up. Don't go away!

Netflix (NFLX - Get Report) appears poised to touch and eventually hold $100.

It's hitting strong resistance between $97.60 and just shy of its $97.80 intraday high but, who knows, by the time you read this it could have busted out.

Doesn't really matter because if it doesn't happen today, it will happen tomorrow or the next day or the day after that. It's inevitable.

What's driving this rise?

Could be misinterpretation of the recent deal with Disney (DIS).

Maybe it's legislative success that, according to All Things D, went down the same way last year but never made its way out of Congress. Netflix is working to overturn an outdated law that prohibits the sharing of personal video rental histories online.

Or did Whitney Tilson go on television again, pumping his NFLX position with tantalizing notions of Netflix as a "value" play?

Just as the timing of when NFLX hits, holds and crosses $100 doesn't matter, neither does the reason. It will happen pretty much the way it did last year when NFLX topped out at a high of $304.79 only to crash to as low as $52 and change. $100. $200. Even $300. Nothing would surprise me.

As I explain in the above-linked Disney article, very few people actually understand the relationship between old and new media. For whatever reason, many otherwise intelligent people cannot wrap their heads around the argument that Disney made a horrible mistake, unless it merely took advantage of a Netflix it doesn't expect to be around come 2016.

This misunderstanding makes the word of guys like Tilson and Netflix CEO Reed Hastings the word of God. They spin nice stories; the market and hack analysts who missed as badly on NFLX in 2011 as they did on Apple (AAPL) this week respond and drive the stock higher on no news and a curious ignorance to uncertainty.

Heck, I'm not even as bearish on Netflix heading into 2013 as I was a throughout all of 2011. In fact, I classify myself moderately bullish, albeit cautious.

The company has quite a bit going for it. I explain most of my cautious bullishness in this article and several linked within it. In fact, back at the end of July, I advocated buying NFLX before it rises from the dead. The stock is up about 67% since then.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
NFLX $416.92 -1.30%
AAPL $124.49 -1.50%
FB $82.16 -1.20%
GOOG $548.46 -0.65%
TSLA $188.77 -0.94%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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