NFLX is undervalued with strong growth drivers in advertising and live sports; expect price appreciation by year-end.

Well, your third name that you brought up today has suffered a bit this year . We're talking about Netflix here. It is perhaps the least defensive of the three. So how do you view Netflix and what drives the opportunity here?

Well, I mean their revenues, they announced revenues of $12.5 billion with expectations of doubling advertising revenues, which sounds pretty good here. Their core advertising category growth engine will double to 3 billion this year, and as I said, enforcing separate emails for profiles is driving viewers to more paid accounts.

Their expansion into live sports looks very promising. The highly anticipated NFL holiday games provide them with a huge advertising inventory, and I think at the moment their low valuation, trading well below historically high levels, means we'll probably see Netflix start to move noticeably closer to the end of the year.

And I love the live sports element on Netflix and how important it is. We continue to hear all this talk about live sports with streaming services, and statements from Allison indicating that he cannot get enough sports broadcasting.

But when it comes to Netflix and NFL games, especially as we approach the holiday season, which represents a significant portion of their revenue in terms of these live sporting events, how influential are these events as a growth engine versus the advertising opportunity these sporting events offer Netflix?

Yes, advertising is definitely the actual revenue driver here for Netflix. But as you know, the more popular they become and the more users they have, the more it will certainly help boost Netflix's net profits.

If the market declines, I think I'll probably buy Netflix here. I think Netflix has real upside potential compared to its current trading price, and I think it will perform very well.