Netflix Stock Rated as Buy Despite Earnings Miss

3 days ago

Parkev Tatevosian, CFA

"So to update my recommendation, I will keep Netflix stock rated as a buy after evaluating those results. And here's an example of um why you know surrounding earnings events. Sometimes it's better to wait for the earnings to come out, digest the figures, and then make your allocation, especially when you had a company that was trading at a relatively expensive valuation going into the earnings release."

The speaker reviews Netflix's Q3 earnings where missed operating margin forecasts, due to an unexpected one-time tax expense in Brazil, led to a downgrade of its full-year margin forecast. Despite these issues, he emphasizes Netflix's structural strengths and dominant position in streaming, updating his recommendation to maintain a buy rating on NFLX.

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