This year on the NASDAQ, Netflix, Inc. (NASDAQ:NFLX) is the top performing stock, as investors have taken more interest in it than in the likes of Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN). However, it is not the time to buy in, according to analyst Robert Peck of SunTrust Robinson Humphrey, as he told CNBC on Wednesday. Peck said that the investors should be patient as Netflix, Inc. (NASDAQ:NFLX)’s shares are up 37% year-to-date, at about $472, but its stock is trading at 50 times earnings before certain expenses.
“We love the story. We love the opportunity. We love the underlying trends. We would just look for a better entry point here to get into the stock,” Peck said.
Investors might be interested in a company which has a better performing stock that may seem to be a lovely opportunity to invest as well but they should never be impatient while making such an investment decision. They should always wait for the right time, which is what Robert Peck advocates for. The fourth quarter earnings report for Netflix, Inc. (NASDAQ:NFLX) showed that its efforts to expand its user base abroad was panning out. After the disappointing subscriber numbers in the last quarter, investors have reacted with glee, with shares showing a continuous and dramatic increase since.
“Any time you roll out in new markets there could be little hiccups or bumps along the way. I think that’s what spooked people in the third quarter, but the fourth quarter you saw them beat both on the domestic side as well as the international side. It seems that the content is really resonating with consumers,” Peck said.
He also said that the value of Netflix, Inc. (NASDAQ:NFLX) depends on its content, mentioning some famous programs like “Orange is the New Black” and “House of Cards”. He said that Netflix is also broadening its scope of movie production by offering sequels to popular movies on the platform, like the 2000 martial arts epic “Crouching Tiger, Hidden Dragon”, the sequel of which will release simultaneously in theaters and on Netflix. He said that Netflix, Inc. (NASDAQ:NFLX) is planning to spend about $3 billion on its content as compared to Amazon.com, Inc. (NASDAQ:AMZN) which is planning $1.5 billion of investment. Evidence also exists that these customers are buying multiple streaming services to replace or supplement their existing cable packages.
Netflix, Inc. (NASDAQ:NFLX) is not only expanding its scope of programming but is also capturing more of the global arena as it has recently entered into Cuba. Investors might get attracted with the well performing stock of Netflix, Inc. (NASDAQ:NFLX) and its market expansion moves but according to the expert analyst, it is not the right time to buy-in.
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