Netflix Could Hit 50 Million Subs: Pro

Tuesday, 25 Jun 2013 | 7:07 PM ET
Netflix Could Add 50 Million New Subs: Pro
Tuesday, 25 Jun 2013 | 5:30 PM ET
With year-to-date gains of 129 percent in its shares, Netflix has farther to climb, Andy Hargreaves of Pacific Crest Securities says.

With year-to-date gains of 129 percent in its stock price, Netflix has farther to climb, Andy Hargreaves of Pacific Crest Securities said Tuesday.

The main reason was that the online video streaming service could likely see its subscriber base climb to about 50 million, sending its stock toward $230 per share, he said.

Shares of Netflix closed at $212.90, down 1.25 percent.

On CNBC's "Fast Money," Hargreaves said that Netflix was uniquely positioned to reach 50 million subscribers.

"It certainly is unprecedented territory for a premium service to get there, but the reality is there's been no premium service that's $8 a month that has the breadth and quality of content that Netflix has," he said. "There also hasn't been a service that has the device distribution that Netflix has and that people watch an hour and a half a day.

"And when you look at those numbers, they're pretty unbelievable, quite frankly."

Hargreaves said that Netflix's potential subscriber base could be as high as 70 million.

"None of us know, but it's a heck of a lot bigger than any premium service has gotten to today," he added.

Trader disclosure: On June 25, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long BAC; Tim Seymour is long SBUX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long SPY; Karen Finerman is long MDY PUTS; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck; AS OF 6/18 Brian Kelly is long US dollar; Brian Kelly is long Canadian dollar.

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