Netflix landed in the spotlight on Tuesday with chatter suggesting its next big move could be lower.
The catalyst was largely a Goldman Sachs note citing a deal inked by Warner Bros with Facebook that will allow Facebook users to pay for movie purchases or rentals with “credits” on Facebook.
Although Goldman analyst Ingrid Chung said that these development do not pose an immediate threat, down the road it could spell trouble
"Facebook represents a new potential entrant that few in the investment community were concerned with prior to this announcement, so we believe it does indeed represent an incremental negative for Netflix shares," she said.
In other words, Facebook could some day become a credible threat to Netflix.
However, in a live interview on CNBC’s Fast Money Piper Jaffary analyst Michael Olson tells us he doesn’t buy it. He does not see Facebook (or Amazon for that matter) as a considerable threat.
In fact he wouldn't be surprised to see Netflix stock trade with a 40 multiple again, or up to $240 .
Find out why. Check out our entire conversation with Michael Olson. Watch the video now!