Ritholtz Wealth Management's Josh Brown picked up shares of Netflix Inc NFLX on Thursday after noticing some resiliency in the name.
"Netflix, technically, looks like it wants to go higher. There's accumulation even on down days and the fundamental catalyst is in front of us," Brown said Thursday on CNBC's "Fast Time Halftime Report."
What To Know: As investors turn more bearish, Brown said he's looking for opportunities by asking himself two questions: "What has already absolutely been killed … and what's holding up really well?"
Netflix is one name that has fallen significantly from its highs around $700 and found support. Now it's refusing to trade lower, even amid overall market weakness, he said.
"This stock is still way above its low and it really is one of the more resilient stocks on my screen," Brown said.
He told CNBC that those who are betting against Netflix co-founder and co-CEO Reed Hastings have been wrong in the past and will likely be wrong again.
"I don't think that will be the winning bet as these companies go into ad-supported platforms," Brown said.
The Netflix Catalyst Ahead: Brown is bullish on Netflix's upcoming ad-supported tier. The streaming giant is even going to pass Walt Disney Co DIS, with the Mouse's ad tier not expected until December, he said.
"Netflix is going to leapfrog Disney … apparently, strategically, it was very important for Netflix to beat them to the punch," Brown said.
He also noted that Netflix partnered with Microsoft Corp MSFT to help build its ad-supported platform.
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"What's significant about that for me is that Microsoft built the greatest advertising platform of all time, which was Facebook," Brown said.
He reminded viewers that Netflix was trading around $700 per share less than one year ago.
"So I think here at $238, I like the risk/reward," Brown said.
NFLX Price Action: Netflix has a 52-week high of $700.99 and a 52-week low of $162.71.
The stock was up 0.47% at $237.98 Thursday afternoon, according to Benzinga Pro.
Photos: Tumisu & StockSnap from Pixabay.
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