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Don’t Follow BofA Into Netflix: Seymour

Investors hit the buy button with gusto on Tuesday, after BofA upgraded Netflix stock to ‘Buy’ from ‘Underperform’ with a $72 price target.

Analysts said the worst should be behind Netflix after their dismal second quarter outlook. And they believe the bull case is more convincing than the bear case.

Also developments at a rival were interpreted as beneficial for Netflix.

Coinstar said Monday that one of its top executives was leaving the company next year. Gregg Kaplan, president and chief operating officer of Coinstar, and founder and interim president of Redbox is leaving the company to pursue new opportunities.

Is the tide starting to turn for Netflix shares?

Trader Tim Seymour, founder of EmergingMoney.com, doesn't think so. He believes the BofA upgrade was more of a trading call than a fundamental comment on the company's business.

“I don’t think anyone thinks they’re going to be as cost efficient and prudent on their acquisition costs,” he says.

OptionMonster Pete Najarian agrees. "I think the call is tactical," he says. "The big issue facing Netflix is content and controlling those costs."

Posted by CNBC's Lee Brodie

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Trader disclosure: On August 14, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long TGT; Brian Kelly is long SWK; Brian Kelly is long USG; Brian Kelly is long XHB; Brian Kelly is long IBM; Brian Kelly is short BIG; Brian Kelly is short DLTR; Brian Kelly is short JWN; Brian Kelly is short BBBY; Steve Weiss is short JCP

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