Despite being a Netflix skeptic, Whitney Tilson of T2 tells us this is the time to buy. “We bought into this stock earlier in the week,” he says.
Although he concedes that his past calls on the stock were either early or wrong he tells us, ”Today, we see a company with $4 billion market cap, down from $16 billion about 3 months ago. And on number of metrics we think that’s very cheap,” he says.
Tilson compares to Netflix to BP after the spill. “Where there’s massive negative headlines daily, it’s still a strong company underneath. I think the selling is way overdone.”
Oh sure, Tilson is aware of the bearish argument - that the company is broken and that CEO Reed Hastings damaged the brand with a sharp price increase.
But Tilson holds a different view.