Netflix just hit an all-time high; one market watcher sees it rising another 30 percent this year

Netflix shares just hit their 27th all-time high of 2018, and one Netflix bull sees even more explosive gains ahead.

"I think by year-end we could see another 30 to 40 percent price appreciation from here," Mark Tepper, founder and president of Strategic Wealth Partners, told CNBC's "Trading Nation" on Thursday.

Such an increase on top of year-to-date gains would easily make Netflix the best performer in the S&P 500 for 2018. The streaming giant is currently the benchmark index's top performer, having already advanced 83 percent since the beginning of the year.

"Netflix is the real deal," Tepper said. "Really the key number that drives Netflix is their subscriber base. They currently have 125 million subscribers globally. ... They also increased their average price by 14 percent and they're just absolutely killing it internationally."

Netflix has disclosed reliably solid subscriber growth in recent years. The company is expected to report 24 percent domestic growth and 59 percent growth internationally over fiscal 2018.

"They could easily double their prices today and nobody would bat an eye so they've got this perfect combination of an addictive product along with pricing power that makes them a buy even at today's level," said Tepper.

The options market is also reflecting market optimism surrounding the red-hot stock, said Stacey Gilbert, market strategist at Susquehanna.

"From an options perspective, flow continues to be bullish," Gilbert said on Thursday's "Trading Nation." "Fast forward to January of next year, what is the probability that Netflix is back to the levels that we saw Dec. 31 of 2017? Right now the options market is suggesting that's less than 10 percent."

In fact, the options market is betting on a big swing higher from here, according to Gilbert.

"What's the probability that Netflix actually doubles?" she asked. "Right now the options market is pricing in around a 35 percent probability for that, so overall bullish sentiment continues in the options."

Netflix shares hit a new all-time high Friday. The stock was on track for a weekly gain of more than 8 percent.

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Disclosure: Susquehanna and/or its affiliates beneficially own 1 percent or more of the securities of NFLX and Susquehanna is a market maker in the securities of NFLX.



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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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