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Netflix Roller Coaster Nearing Next Drop?

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!



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Trader disclosure: On March 8, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (GE); Seymour's firm is short (FCX); Seymour's firm is short (POT); Seymour owns (IIF); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm is short (XRT); Finerman's Firm is short (IJR); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman owns (C); Finerman's firm owns (FDO); Finerman owns (GM) leaps; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's firm owns (M); Finerman's Firm And Finerman Own (MSFT); Finerman's firm owns (TGT); Finerman's Firm Owns (WMT); Terranova owns (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (ABT); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (SU); Terranova owns (CNQ); Terranova owns (JPM); Terranova owns (PNC); Terranova owns (GS); Terranova owns (USB)

For Joe Terranova
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