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TheStreet Open House

'Fast Money' Recap: Following the Netflix Story

NEW YORK (TheStreet) -- The S&P 500 closed near session highs, up 0.38%. 

Netflix (NFLX) jumped higher in the after-hours trading session on an earnings beat and on news that it would be raising prices. 

On CNBC's "Fast Money" TV show, Dan Nathan, co-founder and editor of riskreversal.com, said shares of Netflix need to find support near current levels or they could be headed lower. 

Guy Adami, managing director of stockmonster.com, pointed out Netflix's international growth is doing "extraordinary well." He said the stock seems poised to go higher. 

Steve Grasso, director of institutional sales at Stuart Frankel, said the "story" for Netflix is still intact. If forced to chose to either buy or sell the stock, he was a buyer. 

Brian Kelly, founder of Brian Kelly Capital, admitted Netflix might be headed higher, but he is not a buyer. He questioned the company's business model and said content costs will not be covered by the price hike for its customers. 

Tony Wible, managing director at Janney Capital Markets, said the price hike from Netflix will not force customers to drop the service. In fact, he suggested it would force customers to stay signed up in order to lock in the lower rates. He said the decision to raise prices will unlock value for shareholders. 

Michael Pachter, managing director of equity research at Wedbush Securities, was a guest on the show. He has a sell rating on shares of Netflix with a $175 price target. He admitted that the company had a good product and can enhance its customers' experience with faster connection speeds and better content. However, with rising costs and an extreme valuation, he questioned how the stock could remain at current levels. 

Valeant Pharmaceuticals (VRX) is teaming up with Bill Ackman, fund manager of Pershing Square, to make a hostile bid for Allergan (AGN). Nathan questioned why shares of AGN are up so much in the past six months, given that the company's growth is good but not great. 

Adami said there are very few companies that can pull off a $50 billion M&A deal, suggesting that another company may come into play. He said to take profits on the move higher for AGN and VRX shareholders. Kelly agreed.

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