Thinking of Selling Netflix? 2 Things to Remember
Investors are pressing pause on Netflix (NASDAQ: NFLX). The streaming stock got torched Thursday afternoon after it reported disappointing guidance in its fourth-quarter earnings report. Shares plunged 20% in after-hours trading.
The sell-off itself wasn't surprising. Netflix called for just 2.5 million subscriber additions in the current quarter, an unusually weak forecast for a seasonally strong quarter. Worse, it sees revenue growing just 10% to $7.9 billion, which would be its slowest growth in a decade.
If you're thinking of selling Netflix stock on the news, you're not alone. Wall Street analysts trashed the streamer following the report, with one calling it "dead money" and another saying "the good old days may be gone." Indeed, the days of Netflix posting breathless growth quarter after quarter are likely over, barring an unforeseen change to the business. But if you're ready to part with Netflix shares following the stock plunge and the disappointing guidance, you should be aware of two things.
Source Fool.com