2 Reasons to Buy Netflix Stock on the Dip
The stock can reward patient investors in the long run.
Overview
Netflix (NASDAQ: NFLX) can't catch a break. The streaming leader was already having a tough year, but its second-quarter update, which it released on July 16, sent its share price even lower. The stock is now down 24% this year and 42% over the past 12 months. Netflix's second-quarter results were not terrible, not by a long shot. The company's revenue increased by 13.4% year over year to $12.6 billion, while its earnings per share climbed 11% to $0.80.
However, Netflix's third-quarter guidance of $12.9 billion, which would represent a 11.7% year-over-year increase, fell short of Wall Street's projections. That said, even with the headwinds it is facing, Netflix looks like an attractive stock to buy on the dip. Let's consider two reasons why.
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Originally published at www.fool.com.