Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Should Investors Buy Netflix and AMD on this DIp?

Stock MarketsApr 22, 2021 06:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Should Investors Buy Netflix and AMD on this DIp?

Netflix (NASDAQ:NFLX) and AMD (AMD) have endured corrections in recent weeks. Should investors buy the dip or is this a new bear market? Taylor Dart makes the case for buying the dip.It’s been a volatile two months for the Nasdaq-100 Index (QQQ), but after a sharp double-digit decline, the index has regained its footing and is knocking on the door of new all-time highs. Unfortunately, while several growth names have pulled back considerably from their highs, there is little value out there, with valuations among growth stocks and the indexes sitting at or near record levels. However, these are two names that are out of favor that have been consolidating for several months, and both are now trading at very reasonable valuations. These two names are Advanced Micro Devices (NASDAQ:AMD) and Netflix (NFLX), and both look like great buy-the-dip candidates.

(Source: TC2000.com)

While several high-octane growth names have seen a relentless bid under them since the election, NFLX and AMD have taken a back-seat, with AMD underperforming since its Xilinx (NASDAQ:XLNX) acquisition and NFLX seeing muted returns based on fears that a return to normal activity after COVID-19 would weigh on subscriber growth. In the former case, the deal is finally near closing which should help the stock regain its momentum. In the latter case, NFLX just came off a much weaker quarter than anticipated, with net streaming additions coming in at just ~4MM, down from guidance of ~6MM. While this is obviously a disappointment, it does not affect the long-term picture for the stock, which remains quite bullish. This long-term outlook includes significantly higher free cash flow, continued margin expansion with higher prices, and the fact that competition or not, there is a very big pie for all streaming companies as the shift from cable to streaming options continues. Let’s take a closer look at NFLX below:

Continue reading on StockNews

Should Investors Buy Netflix and AMD on this DIp?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email