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00:00 Shares of Netflix soaring nearly 10% today.

00:02 It was the second best performing stock in the S&P.

00:05 The move comes after Atlantic Equities upgraded the name to an overweight.

00:08 It's our call of the day.

00:09 Analysts saying that the launch of an ad supported tier later this year could boost the streamer's

00:13 share price back over 280.

00:15 That's a jump of nearly 40 bucks from today's close.

00:18 Quick reminder, Netflix is still down 60% this year.

00:22 And to boot, Carter Braxton Worth of Worth Charting sent out a note today with a number

00:26 of charts for them, I believe, saying, "It's a buy here."

00:29 So you got these two things going down.

00:31 I mean, some of us would say it looks like it's ready to party.

00:34 I mean, there's some huge gaps in this thing.

00:36 You know, I mean, the news has not been particularly great.

00:38 It showed really good relative strength to the market when it was selling off in August.

00:42 And again, there's this huge catalyst.

00:44 I mean, the very thing that kind of took the stock down, it could be the very thing if

00:48 they get right, will take it, you know, one step at a time to fill in those gaps.

00:52 I think that we have really had a hard time saying that Netflix looks reasonable on a

00:56 valuation basis for a very long time, as long as we've been doing this show.

01:00 Value Lady bought it right over the summer when it was in the hole.

01:03 Like one share?

01:04 Well, I bought the one share by accident, and then I added after that, remember, the

01:08 crown?

01:09 Yeah.

01:10 So it bought on the crown, only got filled on one share, bought some more.

01:13 I mean, the valuation has come in, and I think that just, you know, when they missed twice,

01:18 it was really the second miss that did them in.

01:21 And all that momentum for whatever, it was a 600-plus stock, they just bailed out at

01:25 any price, no matter what.

01:27 That's an interesting dynamic to me.

01:29 700 print, actually, which is remarkable if you think about it.

01:32 We all probably, well, I shouldn't say, I know I loved it then, too.

01:35 So the move down to 180 or so was just hair-raising, but we actually all said at the time, it was

01:41 the first time maybe ever you were able to buy Netflix at a market valuation.

01:45 Even with the move, it's only trading at 23 times next year's numbers, which is reasonable.

01:50 So 285, given, again, it doesn't matter where we are, but in terms of valuation, it's not

01:55 unreasonable for the stock.

01:56 So CBW likes it, Dan and Karen like it, Courtney probably digs it.

02:00 Stranger Things, by the way, tremendous.

02:03 You've seen it?

02:04 I thought you didn't know how to stream anything.

02:05 No, I get people, you know, I don't understand.

02:08 You got people for that?

02:09 Well, I don't have people for that.

02:10 You've got Lily.

02:11 I have kids, but they help me.

02:12 But I can tell you, Winona Ryder, badass, digger.

02:15 I mean, this has done more for her career than Beetlejuice.

02:18 Remember that?

02:19 No.

02:20 There you go.

02:21 Courtney, do you dig Netflix, as Guy put it?

02:22 Yeah, and I think as long as you're assuming that they can hit these numbers, this does

02:26 look very attractive because their whole issue is that they're kind of stalling out with

02:30 customers.

02:31 But if we're in this period now where maybe people are having to cut their expenses, they're

02:35 coming out with an ad support tier to say, OK, you don't have to cancel Netflix, just

02:37 get the lower subscription and we get ad revenue out of it.

02:41 It's kind of a win-win for everyone, which is really interesting with Netflix.

Dan and Guy Comment on Netflix

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