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Market Gave us a Gift on Netflix: Whitney Tilson

Tuesday, 24 Apr 2012 | 1:53 PM ET

Where others are dropping Netflix shares, hedge fund manager Whitney Tilson is snapping them up.

"When something gets cheaper and the story stays the same we add to it," the managing partner of T2 Partners told CNBC Tuesday. "We don’t look to the market for signals. We do our own analysis. Right now the stock started the year under $70 and it's up 30 percent, one of our biggest winners. The market’s giving us a gift. So thank you, Mr. Market."

Whitney Tilson: Netflix Selloff a Buying Opportunity
Whitney Tilson, T2 Partners, says the Netflix earnings report was "great news." He also weighs in on the alleged Wal-Mart scandal, currently under investigation.

Late Monday, Netflix reported earnings that beat expectations but the stock has since fallen on concerns about slowing second-quarter U.S. subscriptions. Tilson said he bought a lot of Netflix shares in late trading after the earnings when it fell to $85 in order to bring his position back to between 5 percent and 6 percent of his portfolio.

"We didn’t see anything that troubled us in the earnings report," said Tilson, noting the second quarter is "always weak and if you look at the earnings, showing the seasonality. We’re not spooked."

While the Street is concerned about declines in U.S. subscriptions, Netflix's international business has been growing, Tilson said, with 12 percent of the company's subscriptions coming from abroad.

He also said that after projecting a return to profitability later this year, the company now says it will break even in the second quarter, "earlier than anticipated because international subscriptions are growing more than anticipated. That's great news."

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Trader disclosure: On April 24, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long NXPI; Joe Terranova is long JPM; Joe Terranova is long JOY; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steve Grasso is long ABX; Steve Grasso is long CUBA; Steve Grasso is long GERN; Steve Grasso is long HPQ; Steve Grasso is long HSPO; Steve Grasso is long MU; Steve Grasso is long NEM; Steve Grasso is long NYX; Steve Grasso is long P; Steve Grasso is long PRST; Steve Grasso is long VVUS; Steve Grasso is long XRX; Steve Grasso is long ZNGA; Steve Grasso is long FDX; Steve Grasso is long TBT; Steve Grasso is long UAL; Josh Brown is long AAPL; Josh Brown is long EMC; Josh Brown is long NTAP; Josh Brown is long JPM; Josh Brown is long COP; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long GS; Simon Baker is long JPM; Simon Baker is long MS; Simon Baker is long GLD; Simon Baker is long XLF; Simon Baker is long IBM; Simon Baker is long WMT; Simon Baker is long ADSK; Simon Baker is long DELL; Simon Baker is long IBM

For Whitney Tilson
Whitney Tilson is long NFLX

For Toni Sacconaghi
Bernstein currently makes a market in the following companies AAPL

For Bryan Elliott
Raymond James & Associates makes a market in shares of PNRA
Raymond James & Associates makes a market in shares of BWLD

For Mark Zgutowicz
Piper Jaffray received non-investment banking securities-related compensation from the following companies during the past 12 months: VCI
Piper Jaffray makes a market in the securities of LNKD



CNBC.com with wires.

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