Stock Market Sell-Off: Is Netflix a Buy?
Even after recovering a bit from its October lows, the S&P 500 is still down more than 19% this year, which is understandably making some investors reexamine the theses for many of their stock holdings. In the streaming industry, companies such as Walt Disney, Paramount Global, and Warner Bros. Discovery have all seen their valuations shrink in 2022 by more than 40%.
Netflix (NASDAQ: NFLX) has also taken a big hit to its market cap this year -- the stock is down 52% as of this writing. But considering that it's still the most popular subscription video-on-demand (SVOD) platform in the world with just over 223 million customers at last count, is Netflix a buy right now?
Netflix had a rough start to 2022. In the first quarter, the streamer lost 200,000 subscribers -- its first such loss in more than a decade. And if stakeholders were wincing at that figure in its first-quarter report, the company had even more bad news. Management projected it would lose an additional two million customers in the second quarter. Investors reacted swiftly, bidding Netflix's share price down by some 25%.
Source Fool.com
