Why No Love For Netflix? Steve Grasso Ponders That Stock And Other Stay-At-Home Trades
Stuart Frankel & Co.'s Steve Grasso analyzed the stay-at-home trade stocks Wednesday on CNBC's "Power Lunch."
Grasso said he would sell Netflix Inc (NASDAQ:NFLX). The stock is currently trading below its 200-day moving average of $515. And, it's the first time since March 2020 that Netflix has traded below its 200-day moving average, he said.
Related Link: Thinking About Buying Stock In Netflix Or Roku?
Grasso would also sell Zoom Video Communications Inc (NASDAQ:ZM). Many corporations will maintain the work-from-home option, but there will still be "less people" on Zoom, Grasso said. If the stock can hold support around $300, it has a chance to go higher, he added.
Grasso would buy DocuSign Inc (NASDAQ:DOCU). No matter where someone is, "you want to be able to sign [documents] from your cell phone," he said.
Grasso told CNBC he would sell Peloton Interactive Inc (NASDAQ:PTON). People want to get out of their houses and move on to different experiences, he said.
Related Link: Peloton's Safety Issues: What Investors Need To Know
He would buy Chewy Inc (NYSE:CHWY). People won't stop buying food for pets once the pandemic is over, he said, and expects the stock to bounce back over $100.
Domino's Pizza, Inc. (NYSE:DPZ) is a sell, Grasso said, citing that the company has "too much competition."
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