3 Things About Netflix That Smart Investors Know

Netflix (NASDAQ: NFLX) stock was a Wall Street darling for many years. But that impressive run ended in the wake of the pandemic as sales growth trends slowed from around 20% in mid-2022 to less than 2% in the most recent quarter.

Yet the streaming video giant's rebound has already started, which suggests a potential end ahead for the challenges that pushed the stock lower over the past year or so. Let's take a look at a few factors that point to solid investor returns from here.

The main fear around Netflix stock in mid-2022 was that the company had lost control of its own growth story. Despite a steady stream of new content releases, the company posted its first back-to-back quarters of declining subscriber counts in Q1 and Q2. A growth hangover from earlier phases of the pandemic played a role, but management also admitted that Netflix had lost a step in its competitive posture.

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Source Fool.com