Why Netflix is the Most Misunderstood FAANG Stock

Netflix (NASDAQ: NFLX) has been the worst-performing FAANG stock since the beginning of 2021. The global leader in streaming guided for 2.5 million new paid subscribers for the first-quarter, which was 1.5 million fewer than Q1 2021. With the sudden loss of $60 billion in Netflix's market cap, the market is underestimating the company's growth potential, giving investors a buying opportunity for this FAANG laggard.

Streaming is not going away. As the first mover, Netflix has more data and experience than its competitors like Amazon Prime, Disney+, and HBO Max. For example, the Netflix Recommendation Engine, its proprietary algorithm, which the company says helps it save an estimated $1 billion per year by keeping subscribers happy and willing to stick around. And Netflix remains the most popular streaming service with 222 million subscribers worldwide.

But more importantly, subscribers love Netflix. Its product is addictive: On average, subscribers watch Netflix for 3.2 hours per day. Additionally, Netflix series accounted for six out of the 10 most searched shows globally in 2021.

Source Fool.com