Should Investors Buy the Netflix Dip?
's (NASDAQ: NFLX) share prices sank after the video streaming company's results came up short of analyst estimates. While revenue came in line with the consensus, earnings per share (EPS) fell well short due to an unexpected Brazilian tax charge. The company had been in a dispute with Brazilian tax authorities, but took the expense after it felt it could not win in court. However, it was not in its prior guidance, leading the company to miss the EPS consensus by more than $1.
Despite the dip, the stock has still been a strong performer this year, up about 23% year to date. Let's take a closer look at its results and prospects to see if now is a good time to buy the stock on the dip.
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Source Fool.com
