(NASDAQ: NFLX) has been facing a hypercompetitive industry in recent years as numerous streaming companies vie for viewers' attention. Shares are down 48% from their peak (as of May 25), reflecting this challenging operating environment. To spur growth, Netflix introduced a cheaper, ad-based tier, and the business is cracking down on accounts that share passwords. 

Do the beaten-down shares present a potential buying opportunity? Let's look at three reasons why investors would want to buy the top streaming service stock, as well as a compelling reason to sell. 

One of top reasons to like Netflix is its improved financial position. The business reported an operating margin of 18% last year, and management predicts it will be higher this year. That's a sign of a healthy business from a profit perspective. 

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Source Fool.com