Should You Buy Netflix Stock After Its Recent 48% Plunge?
Investors who buy Netflix on the dip might be handsomely rewarded over the long term.
Overview
Netflix (NASDAQ: NFLX) operates the world's largest streaming service for movies and television shows. On July 16, the company reported a mixed set of operating results for the second quarter, with its earnings per share beating Wall Street's expectations, but its revenue and forward guidance falling short.
Netflix stock sank 7% after the release of its second-quarter report, adding to a 48% decline from last year's record high. An increasingly competitive landscape, combined with the recent departure of co-founder Reed Hastings (who was serving as chairman of the board) are among the other factors weighing on investor sentiment.
Details
However, read on to find out why I think the recent pessimism has created a great long-term buying opportunity.
Source
Originally published at www.fool.com.