Adding to Our Netflix Position After Lionsgate Update
The streaming giant has been tied to an acquisition of the revered studio.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| NFLX | Buy | 398 | 78.72 | 2,505 | 3.2 |
After you receive this alert, and when the stock market opens, the Pro Portfolio will buy 398 shares of Netflix (NFLX) at or near $79. Following the trade, the Portfolio will own 2,505 NFLX shares, roughly 3.2% of its assets.
We are taking advantage of the pressure applied to NFLX shares following market chatter that the company was interested in acquiring Lionsgate (LION). We shared our initial thoughts for a potential tie-up with Pro members but we also indicated that:
“If this turns out to be more smoke and mirrors, with Netflix walking away from a deal, that will give us a reason to take advantage of the incremental pullback we are seeing in the stock.“
As we shared with you in Wednesday morning’s opening comments, subsequent reports indicate Netflix is “not interested” and has no plans to pursue an acquisition.
Hence our move to pick up some additional NFLX shares, taking advantage of the oversold condition they landed in with Tuesday night’s market close. With $6.8 billion left under Netflix’s existing share repurchase authorization we would not be surprised to learn we are not alone in taking advantage of this share price pullback and oversold condition.
As we make this latest NFLX move, we will maintain our current price target of $115 for NFLX shares as well as our checkpoint at $70.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long NFLX.
