'Fast Money' Recap: Turning on Netflix

NEW YORK (TheStreet) -- The S&P 500 finished flat on Wednesday but eBay (EBAY) and Netflix (NFLX) jumped in the after-hours following their earnings reports. 

On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the growth story is still intact for NFLX because domestic and international subscribers continue to grow. 

Jon Najarian, co-founder of optionsmonster.com and trademonster.com, said the company continues to build a bigger and bigger "moat," making it too difficult for traditional cable companies to fight back. He added that Amazon (AMZN) seems like the only company that could compete with Netflix. 

Dan Nathan, co-founder and editor of RiskReversal.com, said that sentiment seemed damped heading into the earnings report, with Netflix shares down 9% on the year. 

Josh Brown, CEO and co-founder of Ritholtz Wealth Management, disagreed about the negative sentiment, saying the stock is up 236% over the past 12 months. He added that without any real competition the stock will continue to trade with a premium multiple. 

Guest Tony Wible, managing director at Janney Montgomery Scott, has a $450 price target on the stock and said Netflix has more pricing power than the financial world thinks. He said content providers are not as big of a threat to Netflix in terms of pricing. Wible suggested the company will likely raise prices soon. 

Coach (COH) dropped on Wednesday after reporting a poor earnings result. Nathan said he would avoid the stock until it hits $45, where he would consider buying it. 

BlackBerry (BBRY) is up 14% for the year to date. Brown said investors could stay long the stock with a stop-loss at $8.50. 

eBay (EBAY) was higher in the after-hours on news of a $5 billion share buyback program and an investment from Carl Icahn. Colin Gillis, senior technology analyst at BGC Financial, said the stock would have likely moved lower on Wednesday if it hadn't been for the announcement of Icahn's stake.

Previously, it was expected that this would be a "reset quarter" where expectations would be dialed back to more achievable levels. He suggested that splitting up the PayPal and Marketplace businesses might not be as good an idea as Icahn proposes. 

Brown pointed out that Icahn, whether he wins or loses with his proposals, usually comes out ahead because he invests in companies that present value, such as eBay or Apple (AAPL). 

Speaking of Apple, Chris Cado, an analyst at Susquehanna, discussed the tech titan. Many expect the iPhone 6 to feature a larger display, which may eat away at margins, he explained. He said management will likely detail investors about what they plan to do with its cash hoard, which will likely include returning some of it to shareholders. He has a $650 price target on the stock. 

Nathan said Icahn's position -- to which Icahn added today -- puts a "floor" in the stock, making it unlikely to trade below $500. 

Brown said he likes the stock, up to $600. However, he admitted that Apple was unlikely to ever trade with a premium multiple due to its market cap. 

Adami said this recent downturn in price action could be the end of Seagate Technology's (STX) and Western Digital's (WDC) big run, but it's too early to tell. 

Najarian noted the strong April $75 and $80 call buying in Qualcomm (QCOM), where calls outnumbered puts 10 to 1. 

Michael Small, CEO and president of Gogo (GOGO), was a guest on the show. Shares have slipped 30% since its December highs while the airline sector is up 9% in 2014. 

He said the company is making substantial progress in its contracts with Delta Air Lines (DAL) and Japan Airlines. He added that the company is in talks with AeroMexico for a deal to provide in-flight WiFi services. When asked about competition from JetBlue Airways (JBLU), Small said he's not worried and the barriers to entry are quite difficult for newcomers. 

Brown said the stock is richly valued but investors who love the story can own the stock. 

Adami suggested investors stay long the airline stocks. 

For their final trades, Nathan is a buyer of EBAY at $55 and Najarian said to buy Verizon Communications (VZ). Adami likes Anadarko Petroleum (APC) and Brown is buying the WisdomTree Japan Hedged Equity ETF (DXJ).

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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