Trade Call: Bullish on Netflix Amidst M&A Uncertainty

about 1 month ago

Bill Cohen

"if you are of the mind that Netflix loses, the stock is probably a screaming buy because there's probably a lot of arbitrage pressure on it or maybe just negative sentiment surrounding the debt dynamics that you were describing. So a take I I've recently sold Netflix. I bought >> Michael recently bought. I guess if that deal were to fall through because Paramount does do what you suggest and go to $34 a share and Netflix says, 'You know what? Not worth it. Pay the breakup fee, figure out a licensing deal where we can walk away with a trophy.' If that happens, Netflix could add 50 points a share. You look at you look at the the uh draw down it's in. So for me, that's like the really the big takeaway here and might be the right risk to take."

Bill Cohen outlines a trade idea focused on Netflix, suggesting that if the current M&A scenario falters—specifically if Paramount raises its bid—Netflix's stock has the potential to rebound significantly, potentially adding 50 points. He emphasizes the arbitrage opportunity and negative sentiment around the current debt situation as catalysts for a bullish trade call on Netflix.

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