Amazon.com, Inc. (AMZN): Is Now the Time to Sell Netflix, Inc. (NFLX)?

Now, this also doesn’t mean that the sky’s the limit. There’s a reason why the longtime and correct bulls at BTIG and Morgan Stanley have positioned themselves to neutral ratings on the hot stock. We may never see it fall back into the double digits absent a stock split, but it wouldn’t be a surprise to see a sharp correction given how difficult it is to pin a fair value on Netflix itself these days.

No one — not even Netflix — knows the ultimate addressable market for its service. No one knows how much folks will be willing to pay. Yes, even Netflix doesn’t know as it has refused to budge from its flat $7.99-a-month rate to test its pricing elasticity.

All of this makes the call to take profits or to hold on a lot grayer than most stocks with more predictable paths and likely scenarios. See, as far as Netflix, Inc. (NASDAQ:NFLX) shares have gone, it also wouldn’t be a shock to see a tech giant, wireless carrier, or even cable provider gobble it up. Investors who are uneasy after seeing Netflix become such a larger part of their portfolio over the past year can’t be blamed for unloading at least part of their stakes, but that’s all the more reason to also keep at least some shares around so they don’t kick themselves if the stock continues to move higher.

The article Is Now the Time to Sell Netflix? originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends and owns shares of Amazon.com and Netflix.

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