McCaul’s Summer Bet on Netflix Stock Is Paying Off
Congressman Michael McCaul appears to be a big believer in Netflix Inc (NFLX:US) stock. One of the most influential Congress members reported at least 8 buy transactions involving NFLX shares in 2022 alone.
The Congressman, who is a member of the House Committee on Homeland Security, was trading in the streaming giant since April 2021. He then nearly perfectly timed the sale of Netflix stock, using the near-record levels in December last year and January this year to take profits.
However, Rep. McCaul returned to buying Netflix stock in February this year before adding more throughout the year. His latest round of buying Netflix shares occurred in May this year when he invested likely over $200,000 while the stock was trading below $200 per share.
His timing was again extremely good as Netflix stock returned to trade above $200 per share in July. Shares hit levels above $300 per share this week as investors hope the company’s new initiatives, like ad-tier and password-sharing crackdown, can improve both top and bottom line figures.
As a result, NFLX shares hit an 8-month high earlier this week before correcting lower. Based on Thursday’s closing price, it could be that McCaul’s latest long trades are already up about 50%.
In October, the streaming giant reported it added over 2.4 million subscribers in the third quarter, sending its shares 15% higher after announcing results. Overall, Netflix stock is still down more than 50% year-to-date (YTD).
