3 Stocks I Saw on TV (NFLX MSFT IDXX) (July 19, 2016)
NFLX MSFT IDXX
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas the grow OUR money. Well good trading takes more than just pushing the buy button, every morning, to get the stocks you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
We’re going to start with Netflix ( NASDAQ:NFLX ); I talked about this yesterday. The deal is, there wasn’t much of a deal with their earnings. They’re not growing the way that they would like to, and when the CEO says, “We’re not growing the way we would like to,” that’s a problem. The stock gapped down and my suggestion yesterday was, that the stock was trading down, after hours around $85.00, so short-term you buy this stock looking for a bounce. But longer-term this just looks pretty toppy, they don’t do Sons of Anarchy anymore, so I’m out. I don’t want to own Netflix ( NASDAQ:NFLX ) right now. Besides, it’s actually more expensive than Amazon. So I’d rather bet on Jeff Bezos than Robin Wright.
I look at this as a stock that I don’t want to own long-term. But I’m telling you right now, after the kind of move that it had today, or not, if you’re looking for a bounce, this is it baby. I think this is as far as it went, it lasted like 10 minutes into the day. This was it, a huge, big, massive sell-off and then a rally, and then the rest of the day nothing. So what’s this telling you? The big demand for the stock is down at 85.00, because that’s where support is; it’s not at 86.00 or 87.00 or 88.00. So I would be selling Netflix ( NASDAQ:NFLX ). I’m not talking about shorting it. I’m just saying, I don’t want to own this stock.
Now, Microsoft ( NASDAQ:MSFT )., here’s where it’s trading after hours. You could see the big reaction in response to earnings. I don’t have the numbers in front of me, and it doesn’t really matter for the purposes of this video. I think the market was looking for 55.00 a share and they made 69.00, something like that. It was a big, big number. Their Cloud business grew 7 percent. That’s a pretty decent growth for an old company like Microsoft ( NASDAQ:MSFT ).
The company has been around forever, that’s a pretty strong growth. Their Cloud Service platform revenue doubled on that, so there’s a lot of good stuff going on for the company. But what about the stock? I’ll tell you, if I’m long the stock, and I’m not, I don’t have a position. I would actually be kind of selling into this, just as a function of chart analysis. This was the top, this was the top, so we draw this over, you’ve got to look at some kind of selling going on up here. So I would be moving out of this stock then. Again, because everybody knows what the numbers are, so it’s not like you’re getting a head start or you have an edge. You don’t.
The the last thing is IDEXX Labs ( NASDAQ:IDXX ). This is a pet lab for animals, hospitals and labs. I’m looking here at the chart, they report earnings on the 2nd. Cramer likes this stock a lot, but he wants you to wait to buy it on a pullback. Frankly, I have no problem with that, because it’s a little extended. It’s VERY extended above the 200-day moving average, but this is what strong stocks do. You have to look at this trend. It’s a strong uptrend here, it’s working, but it’s not quite at the greatest buy point.
I’ll just leave it this way, if you want to buy this stock own a little bit now just take a little bit so that you don’t forget about it, frankly. Buy a little bit of stock now, but then if you get a chance to get it closer to the 50-day moving average, that’s a better time to be buying this stock. And then, by the way, if it starts trading BELOW the 50-day moving average, for just more than a day or two, then I think you DON’T want to be in this stock. Because look, its had a heck of a move from the bottom, 50 percent, close to it, so it’s not going to go up forever. But as long as it stays above the 50, that’s really where the action is.
3 Stocks I Saw on TV Free Chart