Stocks Jump on Potential Greece Deal, Higher Targets for Facebook, Netflix

NEW YORK ( TheStreet) -- It's off to the races for global stock markets, as a deal with Greece and its creditors is looking more likely. 

"I've been entirely wrong" this month, Joseph Terranova, chief market strategist for Virtus Investment Partners, said on CNBC's "Fast Money Halftime" show. He's been bearish in June, which hasn't worked out too well. 

Greece is giving the bulls something to be excited about, and with earnings coming up in a few weeks, the stock market could go higher, Terranova said. 

Terranova believes interest rates are headed higher in September, which would boost the financial sector. He also likes JetBlue Airways (JBLU). 

Jon Najarian disagreed. Najarian, the co-founder of optionmonster.com and trademonster.com, said the Federal Reserve will likely keep lower rates for longer, adding that a new Greek debt deal is unlikely to change the Fed's timing. 

Are we overthinking Greece? A few years ago, there was much more systemic risk with the country, but not anymore. Simply put, investors are less worried about Greece, according to Josh Brown, CEO and co-founder of Ritholtz Wealth Management. 

He cited the SPDR Euro Stoxx 50 ETF (FEZ). It's essentially the Dow Jones Industrial Average of Europe, Brown said, pointing out that the exchange-traded fund is surging in this session, up 5% at one point. That shows investors are truly not worried about how Greece will affect the European economy and companies. 

Gemma Godfrey, chief investment strategist at Brooks MacDonald, said Greece makes up less than 2% of Europe's gross domestic product and most European banks have shed their exposure to the struggling country.

Many investors were anticipating a negative stock-market reaction to the Greece situation, as the country inched closer to default. That left portfolio managers raising cash to buy on a pullback, Brown said. So where will the money go now if there is no pullback? He suspects some of the favorites, such as Netflix (NFLX) and Facebook (FB), will be bought, along with cyclical stocks. 

Netflix and Facebook both received boosts from analysts on Monday. 

BTIG's Rich Greenfield raised his price target on Netflix to $950, even though his earnings estimate for the company are below analysts' average. He cited subscriber growth momentum and superior content as drivers behind the stock. 

Several analysts have now significantly raised their price targets on Netflix, Brown pointed out. Netflix can invest more of its cash flow back into its business, as long as revenue and subscriber results continue to top estimates, Brown said. 

Jon Najarian is not long the stock, but said there's no way he would want to short it. Although he views the price target as too aggressive, he said it's hard to bet against Netflix now. 

Also on Monday, Piper Jaffray's Gene Munster maintained his overweight rating on Facebook and hiked his price target from $92 to $120.

"I like the call," Terranova said. The stock looks like it could rally in the second half of the year and begin its move to $100.

Pete Najarian, co-founder of optionmonster.com and trademonster.com, is also bullish, saying he's looking for the stock to break out. 

Assuming a new competitor doesn't come along, Facebook could have years of runway left in its business, Brown added.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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