Netflix plans on launching a new series on the life of Marco Polo. Is it something that can save the stock or does the stock not need saving at all?
Netflix is turning to Marco Polo to help them find new subscribers in 2014.
Sure, the Ventian explorer may have been dead for nearly seven centuries, but Netflix is hoping that a series about his life will bring added life to Netflix. The original series will join the likes of "Orange Is The New Black" and "House of Cards" and the company is hoping it will be as successful.
Netflix could use a little boost right now as the stock is off by 8% sine 2014 started. According to CNBC contributor Gina Sanchez, founder of Chantico Global, says it's not so much about rapidly expanding Netflix so much as it's about keeping up with one of its biggest competitors.
"There's a tremendous amount of competition," says Sanchez. "Particularly, Amazon Instant Video has really been coming in strong. My outlook on Netflix has actually gotten far more pessimistic because of that."
So, while 'Marco Polo' itself may not save Netflix, the company needs to make original programs, according to Sanchez. Netflix is slated to premiere nine new series in 2014.
"I think it's what they have to do in order to survive," says Sanchez. "But, I'm not necessarily expecting it's going to be a savior for them because Amazon Prime Services is announcing their own slate of original programming. That's exactly what Netflix is fearing. So, I'm actually quite bearish right now."
Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, takes the opposite viewpoint of Sanchez. He believes the stock's charts are strong.
"This is a stock that does not need to be saved," says Ross. He believes the recent pullback is to be expected given the stock's meteoric rise over the last two years. It has tripled in price since the begging of 2012. For Ross, the charts are graphing a fundamental shift in the company which continues to hold.
"It's reinvented itself and the chart reflects that," says Ross. "I think this pullback is a compelling buying opportunity."
Ross sees Netflix's 100-day moving average, near $330, as acting at support. "I think that support holds and the bull market resumes in earnest for this stock," says Ross. "This is a gift here in the early going for Netflix. You want to be a buyer on this pullback. I still like the name."
To see more of Sanchez and Ross on Netflix, watch the video above.
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