'Expensive, but not stupid expensive': How two traders would play Netflix as stock hits all-time highs

Netflix should be bought if it pulls back, two traders told CNBC after the stock hit a record high Tuesday.

Atlantic Equities raised its price target on the stock to a Street high of $780 per share, citing international adoption in Japan, India and Latin America ex-Brazil. Netflix finished trading up nearly 3% at $606.71.

"On a relative price-to-sales ratio, the stock is expensive, but not stupid expensive," Laffer Tengler Investments chief investment officer Nancy Tengler said on "Trading Nation."

Though Netflix does face a fair share of headwinds — high content costs, negative operating cash flow, negative free cash flow and the slow wind-down of stay-at-home living — it also has pricing power, a five-year hold on the rights to "Seinfeld" and a goal of up to 260 million subscribers worldwide by 2024, she said.

"If you don't own it and you want to, you pick away at it slowly," Tengler said. "But it's an expensive stock and a lot of the good news is priced in, so you might get better opportunities."

With analysts expecting Netflix to grow earnings per share by 23% next year, the stock does appear to have some runway, Inside Edge Capital Management founder Todd Gordon said in the same interview.

"That comes out to 47 times forward earnings which, as Nancy said, is not stupid expensive, but it's expensive," he said. "On a pullback, I'd like to buy more."

Streaming customers could also become more cost-conscious as economic stimulus programs end, giving way to opportune declines in Netflix shares, Gordon said.

"Anything back to 575, I think you can add if you don't own it already," he said.

Disclosure: Gordon owns shares of Netflix.

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