3 Stocks I Saw on TV: NFLX, IBM, AMZN (April 18, 2016)
Every night we watch the same shows, Fast Money and Mad Money, and we want to use those ideas to grow our money, right? Well good trading takes more than just pushing the buy button every morning on the tickers you saw last night on TV. I’m here to help you make money on these 3 stocks I saw on TV. We’re going to look at earnings now.
We’re starting off with Netflix ( NASDAQ:NFLX ). The stock has tanked, right? It’s $100.00. Oh my gosh! It’s down 8 percent after giving weak guidance, disappointing guidance, over subscriber growth. Well, lets look at what the stock did after earnings were reported; bad guidance. You see the stock absolutely tanked after market. Down almost to $90.00, right? OMG! Since that time the stock has been trending up. I think that tomorrow morning this is a buy. I think that you look and you buy this gap, $100.00, if the stock holds above $100.00 buy it.
The bottom line is this: A stock that gaps down this much, if it holds the gap initially, you want the be long this stock. I think this a buying opportunity for Netflix ( NASDAQ:NFLX ). You can see what has happened today, Amazon ( NASDAQ:AMZN ) comes out, Jeff Bezos, reports that they’re basically going to compete with Netflix ( NASDAQ:NFLX ). Sure, why not? That knocked the stock down a little bit. And now after hours the stock is down even more. Don’t be selling this thing. If you’re long the stock you were expecting a move higher after hours, don’t be selling it tomorrow morning. Because you’re going to be glad you didn’t by tomorrow afternoon. I think the stock works as a buy.
Now Amazon ( NASDAQ:AMZN ), that’s the other side of the coin. Amazon ( NASDAQ:AMZN ) reports that they’re going to have a streaming service. It’s all good. Oh my gosh it’s wonderful! Stick with the trend. I don’t really care about their streaming service. What I care about is that they report earnings on the 28th, that’s 10 days from now, and the stock is in a nice uptrend. So I think you can be long this stock. Just be selling it before the 28th, before they report earnings.
And then finally IBM ( NYSE:IBM ). IBM ( NYSE:IBM ), they didn’t really meet their estimates, look at where the stock is. Guess what I’m thinking on this? Guess what happened back here? The stock took a dump on earnings and immediately started trading higher. This is now a stock, that if look at where it’s trading now, it’s down 4 percent. Frankly, that’s not enough. If IBM ( NYSE:IBM ) fell even more, I would want to buy it, just buy it hand over fist, just get it. But as I look at this now, if the stock holds above this 200-day moving average tomorrow, that is a bullish sign. Because we see this downtrend has been broken and reversed. And so now, when we get the first test of the resolve of the bulls, we want to see the bulls step up and take this stock on a dip. That’s what I would do.
3 Stocks I Saw on TV Free Chart