Cabot Publisher and Chief Investment Strategist Timothy Lutts writes in Cabot Wealth Advisory today about Netflix, Home Depot, and the memory of the stock market. Read an excerpt below:
Netflix (NFLX) stock surged 11.4% last Wednesday, on big volume, as the company released some encouraging data about its customers’ embrace of video streaming, stating, “More than 20 million subscribers worldwide watched more than two billion hours of old TV shows and movies on devices with high-speed Internet connections during the final three months of last year.”
On Thursday the stock paused, but on Friday it surged again, to its highest level in a month, on even greater volume.
And that raises the question, “Is it time to get back into Netflix?”
After all, the stock is 72% off its highs of mid-2011 when it alienated customers by raising prices and then goofed (big-time) by announcing and then cancelling a plan to separate its DVD-by-mail and video streaming business. Having lost $12 billion in valuation since then, Netflix looks cheap to a lot of investors; in fact some view it as a takeover target, citing Amazon (AMZN) and Yahoo (YHOO) as potential buyers.
Read the rest in today’s Cabot Wealth Advisory