Netflix (NASDAQ: NFLX) stock has notched a nice little rally in the wake of the company's second-quarter 2022 earnings. Share prices rallied some 25% in the days following the quarterly report. Global subscriber losses and resulting revenue didn't fall as much as expected, and shareholders were happy to chalk it up as a win.

But Netflix isn't out of the woods (at least not yet). Blame the U.S. dollar's historic run-up against most other currencies. For Netflix's business model, a strong U.S. dollar is putting a serious dent in profitability. Until this headwind abates, the streaming pioneer stock isn't nearly as cheap as it may appear.

In spite of a 1 million paying subscriber net loss from the previous quarter, Netflix's revenue actually increased 8.6% year over year in Q2. More subscribers from the year prior and higher subscription fees helped the top line edge higher. 

Continue reading

Source Fool.com