3 Reasons Not to Worry About Netflix After the Latest Report

Netflix (NASDAQ: NFLX) shares were getting banged up again after its third-quarter earnings report.

The streamer's quarterly results almost always prompt a big swing in the stock, and the latest example fits the pattern. Netflix shares fell as much as 7.1% on the news as the company missed its own guidance for subscriber growth, its most important metric. It added just 2.2 million new members in the quarter, worse than its dialed-down forecast of 2.5 million after subscribers surged by nearly 26 million in the first half of the year, boosted by lockdowns in the early months of the coronavirus pandemic.

While a pullback in the stock may be warranted after such a report, as it's now clear the pandemic-related tailwinds have passed, Netflix still looks well-positioned for long-term growth. In fact, there were a number of positive signs in the report, despite the slowing growth. Here are three reasons not to worry about slowing subscriber growth.

Source Fool.com