Netflix Inc. (NFLX)

A year ago, it was losing subscribers and a lot of dreams had come out of the stock. They turned it around, nice rebound, but got ahead of itself in light of earnings last night. He sold because growth was all priced in.

Announced a disappointing quarter and forecast today. Shares may take a breather, but Netflix doesn't decline for long.

Just hit a 52-week high. Are working on their password sharing crackdown while the ad tier is starting to work well. They are starting to generate cash flow again. Likes this for being a pure streamer as opposed to Disney, which he may re-buy down the road.

It's all about the content war, and they're winning it. They have great content.

Down today because all tech is down. Big announcement today about Warner's and HBO. NFLX is king, no one else can compete on economies of scale. The one he has the most certainty on growth going forward. Not cheap, but attractive based on growth.

A second driver of growth has been the new ad tier. After six months, this new tier has attracted nearly 5 millions subs worldwide and “more than doubled” since early this year. About one in four new sign-ups elected the cheaper ad version of Netflix. It’s still early days, but these figures are moving in the right direction. The street reacted last week with two upgrades, including one price target jumping to $535. That may be optimistic, but the consensus is that Netflix has more room to run. Read 3 Big Tech Stocks Making a Comeback for our full analysis.

The password crackdown is effective. A lot of the quant buying in recent weeks is going to breakouts like Tesla. Their fundamentals are also improving.

Loves this call. The company is monetizing its existing base through password sharing--it's starting to work. The ad-supported tier is starting to grow. It's the leading streamer.

Shares are already up 37% YTD, though 40$ below all-time high. A clear-breakout and likes the momentum. The PE is lower than other streamers, like Disney. Password-crackdown is working. This could hit $500 with this momentum.

The last quarter has seen a major improvement in revenue growth and shares now have price momentum

They reported an EPS beat yesterday and did some things right, others not. That resulted in a small sell-off today after a long run. Yawn. Wake him up when there is real news. 

It reports next week. He's watching the new ad-tier numbers and password sharing. Daily active users are up 10% in March.

It is profitable and not losing billions on the streaming business like Disney, Paramount, etc. They know what they are doing and are ahead of the competition. It is guiding to $3 billion free cash flow this year and trading at a reasonable valuation. He sees earnings doubling over the next few years.    Buy 27  Hold 23  Sell 4

They're cracking down on password sharing. NFLX is an opportunity now.