A Few Months Ago, Whitney Tilson Gave A Presentation That Predicted The Huge Netflix Turnaround We're seeing Today

Julia La Roche

2013-01-24T18:44:00Z

Shares of Netflix are ripping today after the video rental and streaming company posted a surprise profit in the fourth-quarter.

The stock is trading up more than 37%.

Hedge fund manager Whitney Tilson, who runs T2 Partners, is long Netflix.

Back in October at the high-profile Value Investing Congress, he gave a big presentation on some value stocks that he likes. In that presentation he touched upon Netflix.

We've included the excerpt in the slides that follow.

After a long history with the stock, Whitney Tilson had a new update.

At the time of his call, Netflix had been getting CRUSHED.

Tilson, of course, has experience on both the long and short side of Netflix. He got burned pretty hard shorting it on the way up the last time.

The basic gist, is that Netflix is a market leader in a crucial area, and nobody is dislodging it.

And he compared its balance sheet to a certain consumer tech company, which he didn't identify...

He reveals that Company A was the beloved... Amazon.

Amazon and Netflix both use technology and the internet to deliver an old product "in a new way." What's more is he said they both have "visionary, entrepreneurial CEOs." Tilson said Amazon is a great, convenient service at a low price and that both of the companies have extremely large, global growth opportunities.

Ultimately, he says Netflix has a better business model than Amazon.

Want to see what Tilson said was one of the best pieces of investment research?

Check Out Bill Ackman's Dizzying Presentation On Herbalife >

Hedge Funds Netflix