Mark Cuban's Netflix Tweet May Be A Slam Dunk
Mark Cuban tweeted back on back on October 17 that he was buying shares of Netflix, Inc. (NASDAQ: NFLX). Netflix closed that day at $357.09. The trade was moving against him for awhile, as Netflix traded down to $316 in December. As of Tuesday afternoon, Cuban's trade was relatively even.
Following the company's earnings report, however, Netflix has taken a serious jump. Shares recently traded around $405.85, up more than 16 percent on the day and up more than 12 percent since the day of Cuban's tweet (which has since been deleted).
Cuban’s argument was that Netflix could become a takeover candidate, a prediction that has not yet come to fruition. He noted that the company was valued less than Yahoo! Inc. (NASDAQ: YHOO) and Twitter Inc (NYSE: TWTR). During this same time period, Yahoo has gained about 23.5 percent on the back of Alibaba Group Holding Ltd (NYSE: BABA); Twitter has shed 22.5 percent.
Netflix and Twitter’s market caps now are in line with one another, something that Cuban may have seen coming although not necessarily in this manner.
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