New 52-week highs for Facebook, Netflix as momentum traders pile in


Short Hills Capital's Stephen Weiss: "You take a look at Tesla. You take a look at Netflix. You take a look at Green Mountain Coffee. If you've got momentum, you're going to go a lot higher." Words of wisdom, or a reason for bulls to be cautious?

Facebook (FB +2.3%) is adding to the gains it saw on Friday following positive numbers from comScore and ITG Research.

Netflix (NFLX +3%) has been lifted lately by strong ratings for Breaking Bad (first-run U.K./Ireland rights), and a major deal with The Weinstein Co.

There are also rumors Microsoft might try to buy Netflix to make (ex-board member) Reed Hastings Steve Ballmer's replacement, but the notion Microsoft will acquire a $16.9B company (a buyout premium could make it $20B+) just to get a new CEO should probably be taken with a spoonful of salt.

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Comments (6)
  • Amos Newcombe
    , contributor
    Comments (6) | Send Message
     
    Does Stephen Weiss' memory only go back 52 weeks? Netflix and Green Mountain were momentum plays two years ago too. Then they both crashed due to management stupidity. Neither is yet back to those highs. Have their problems been fixed? This guy doesn't know or care.

     

    Physicists have a law called conservation of momentum. The stock market has no such law -- momentum can disappear in an instant.
    26 Aug 2013, 04:00 PM Reply Like
  • gwynfryn
    , contributor
    Comments (5916) | Send Message
     
    Good point, but there is such a thing as virtual momentum, and those who bailed out when it reached the price they paid at the IPO, really should have held on and let it climb, but that's human nature, for most; having had their money underwater for so long, they just wanted out! Without the "IPO novice" effect, though, I expect the momentum would have continued, which is what usually happens.
    27 Aug 2013, 09:07 AM Reply Like
  • Sakelaris
    , contributor
    Comments (2373) | Send Message
     
    Doesn't Netflix have a LOT more subscribers now compared to 2011? Just asking.
    26 Aug 2013, 04:07 PM Reply Like
  • RobbyRob
    , contributor
    Comments (362) | Send Message
     
    This article wouldn't even have made the elementary school "Weekly Reader" that used to get distributed. I smell dumb money and muppet fur. Jumping into NFLX at 285 and FB at 41 is strictly a lemming MOMO move. The hubris of buying today because someone dumber won't realize how great NFLX or FB is until the day after tomorrow (when it is higher of course) and will just HAVE to buy the shares from you is humorous...and is what eventually kills the momentum.
    26 Aug 2013, 11:12 PM Reply Like
  • Water Brothers Financial Co...
    , contributor
    Comments (382) | Send Message
     
    Stephen Weiss - knew him at UBS, a two-bit failed stock-picker just like Cramer; tells you what you already know and if it doesn't work he disavows he said it. Hastings at Msft? Sure let's trade an incompetent for a crook. I am not sure Hastings - or Ballmer for that matter - could run a laundromat for profit much less a real tech co. And 20 billion for Blockbuster -er Netflix - fuggedaboutit, no way ever.
    27 Aug 2013, 08:56 AM Reply Like
  • RobbyRob
    , contributor
    Comments (362) | Send Message
     
    Hastings can't run a laundromat for profit...LOL! He is doing a great job of laundering his own money through NFLX....I think he may have exercised and sold more $$ in stock compensation than the entire cumulative profits of NFLX. I'm too indifferent to do the math on it.
    27 Aug 2013, 09:36 PM Reply Like
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