Netflix Is Down 46% -- Here's Why I'm Buying More
It all comes down to one metric worth watching.
Overview
Netflix (NASDAQ: NFLX) has seen its stock drop around 46% since peaking last summer, as earnings growth has slowed and management has moved to disclose less information about viewer engagement. But in my opinion, the sell-off has gone too far, and investors are ignoring the massive free cash flow generating capabilities of the premier streaming business.
Netflix is on track to produce $12.5 billion in free cash flow this year, and that number could climb significantly higher in the years to come. That makes the stock a compelling buy at its current price.
Image source: Netflix.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.