3 Reasons to Buy Netflix Stock

The rally in  (NASDAQ: NFLX) stock finally came to a halt, at least momentarily. After crushing the market for the better part of two years, the streaming specialist's most recent quarterly update gave investors pause. Worse-than-expected bottom-line numbers sent the stock down by about 10% on the heels of its earnings release.

The company recovered after it announced a 10-for-1 stock split, but that's hardly a good reason to invest in a stock, and some might still worry about the long-term implications of the earnings miss. Despite this problem, though, there are still strong reasons to invest in the stock. Here are three.

Netflix has long said that, despite the streaming industry's significant headway over the past decade, there is still a huge runway for growth. One way to see this is by looking at television viewing time in the U.S., one of the more penetrated streaming markets. Cable and broadcast together still accounted for about 44.6% of TV viewing time in September, much of which should eventually be captured by streaming.

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Source Fool.com