Billionaire investor Mark Cuban announced via Twitter Friday that he plans to take a long position on Netflix (NFLX) – and says he thinks the online video-streaming company is a takeover target of a bigger media conglomerate.
In his tweet Mr. Cuban wrote: “I’m buying NFLX stock. At half of YHOO, 10B 8:33 AM – 17 Oct 2014”
NFLX recently traded at $351.42, down $5.30, or 1.46 percent. Based on its current pps, Netflix has a market cap of $21.45B, compared with $29.81B for Twitter Inc. (TWTR) and $33.40B for Yahoo (YHOO).
Mr. Cuban’s announcement comes after Netflix shares plunged nearly 20% in market trading Thursday, the most in more than two years, after the Internet company said subscriber gains were lighter in the third-quarter than otherwise guided 90 days ago.
Even amid this week’s nosedive, the stock, which closed Thursday at $361.70 is up more than 12.02% year-over-year and 37% over the past two years.