How to Profit with Netflix (Nasdaq: NFLX) and Twitter (NYSE: TWTR) Stocks on the Move

This morning (Tuesday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." to discuss whether Netflix (Nasdaq: NFLX) and Twitter (NYSE: TWTR) stock are buys for investors.

  • Netflix Inc. (Nasdaq: NFLX) stock is sitting at a pricey $436.85 a share. Despite the premium, Fitz-Gerald is a big fan of the company's business model and its push for original content. In fact, Fitz-Gerald shocks host Stuart Varney with where he believes Netflix is headed next.
  • Almost 9.9 million shares of "insider" Twitter Inc. (NYSE: TWTR) stock, valued around $565 million, was set free on Saturday, allowing non-executive employees to unload should they choose. Fitz-Gerald foresees a major problem with Twitter stock's future supply-and-demand – watch the video to find out what action he suggests investors take immediately:

Today's Profit Alert: This "Workhorse" Metal Is Ready for a Breakout

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  1. H. Craig Bradley | February 18, 2014


    I don't understand a volatile company like Netflix. It seems it is another Apple in that it is wholly dependent on the "star" of the show, so to speak, CEO Reed Hastings. If he makes a mistake, the stock goes down, as it did a couple years ago when he tried to split the website into DVD and Streaming and raise the price at the same time. Subscribers bailed for awhile.

    Since then, he has grown a new crop of subscribers globally with expansion and original content. Not all of his original content is of equal quality, however. Still, he can draw new interest and subscribers with House of Cards, Season II. ( Its still not near as hard-hitting as the former Starz cable series "The Boss", with Kelsey Grammer). He is competing with HBO which shows largely old reruns with a recent movie mixed-in each month or two.

    Netflix's current streaming library is somewhat limited today to largely independent and foreign movies with a few box office flops thrown in for good measure. He won't play the studio's game, so its "Cheaper by the Dozen" for now, anyway. Viewers don't seem to care much about movie quality, the the viewer audience has changed in some way in the past few years. If you really want to see a specific title, DVD's are still the way to go.

  2. H. Craig Bradley | February 19, 2014


    Right now, some subscribers to Verizon FIOS and AT&T Universe broadband are noticing longer load times and lower resolution from Netflix streaming movies online. These carriers are in a dispute with Netflix and are limiting the amount of data they allow from Neflix. The broadband carriers want more money from Netflix in exchange for carrying up to 4X the streaming data in the last year.

    Some Netflix customers are not getting sufficient bandwidth to stream movies at all ( 1.5 megabites) during prime viewing periods. As a result, Netflix could end-up losing customers over the matter and eventually have to raise subscription prices again anyway to pay higher access fees to the broadband carriers. CEO Reed Hastings is attempting to protect future profit margins in an environment of increasing (data) costs. Pressures are also generating latent inflation more generally in the economy, as well.

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