Netflix, Inc. (NFLX) shares soared nearly 24 points to $671.10 in market trading Wednesday, crashing through the top of the stock’s 52-week regular session trading range of $315.54 – $647.15. The gains were partially attributed on anticipation that a stock split is ahead. Netflix shares, which are currently trading at 175x FY/15 earnings estimates, and more than 193x FY/16 forecasts, have performed extremely well this year, rising more than 96 percent. Shares have advanced 13.76% in the last 4 weeks and 52.46% in the past three months. Over the past 5 trading sessions the stock has gained 7.95%. And traders see little reason for the hot name to slow down.
“There’s a lot of momentum behind it, it’s up 100 percent year to date, but this is a story that’s got some real growth opportunity,” said Wednesday on CNBC David Seaburg, head of equity sales trading at Cowen. International expansion presents “a massive, massive opportunity for them. You could paint a picture here…that this is a $1,400 stock in five years.”
Taking a technical look at the stock’s chart, Oppnheimer’s Ari Wald agrees that “the charts look good, and the stock goes up.”
“I think the trend continues, so the technicals are still fine here,” Wald said, adding the stock “is breaking higher, it’s been up with good volume, there’s conviction behind this move. If you’re in it, stick with this stock.”
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