Netflix Is the Worst-Performing Stock in the S&P 500. But Is It a Buy?
This year is shaping up to be a leader in events that haven't been seen in decades -- not just inflation, gas prices, and interest rate hikes, but the stock market itself is off to its poorest start in 50 years. The S&P 500 is sitting 17% below where it started the year. And everyone thought 2020 was bad.
Yet as difficult as it's been for stocks generally, none is having a worse time than Netflix (NASDAQ: NFLX), which is the worst-performing stock in the broad market index, with shares down over 63% year to date. Shocking subscriber losses were the primary fuel that lit the fire to the streaming video stock's valuation. Maybe the destruction of shareholder value was justified, but has it gone too far?
Netflix is still the biggest streaming service globally and says next quarter it will recoup the 1 million subscribers it lost this time around. It's still a powerhouse in the industry, so should investors be looking at buying this beaten-down streaming giant, or does it still have further to fall?
Source Fool.com
