Is the Market Totally Wrong on Netflix Stock?
Shares of Netflix (NASDAQ: NFLX) are up 21% over the last month as investors started to see brighter prospects for the embattled streamer. While Netflix reported its second-consecutive decline in paid memberships, its second-quarter loss of 970,000 subscribers was better than management's anticipated loss of 2 million.
The worst seems to be over, as management guided for paid memberships to increase by 1 million in the third quarter. That should lead to a revenue increase of 12% on a constant-currency basis.
Some investors probably saw this coming. It wasn't unreasonable to expect that Netflix could beat its subscriber forecast, especially after interest in the latest episodes of Stranger Things caused Kate Bush's 1985 single Running Up That Hill to go viral, climbing to the top five of the Billboard Hot 100 list in June.
Source Fool.com
