Netflix Just Proved 2 Aspects of the Stock's Bull Thesis
When Netflix (NASDAQ: NFLX) reported its third-quarter results after the market close on Tuesday, the headline numbers were something of a mixed bag. Revenue of $6.44 billion grew roughly 23% year over year, while net income of $790 million climbed about 19%. Customer growth sputtered, adding just 2.2 million new subscribers, slightly below the 2.5 million Netflix had forecast. The tepid customer growth sent investors running for the exits, and the stock slipped about 7% on Wednesday following the report.
There were two important metrics shortsighted investors largely ignored that, taken together, provide compelling evidence that the investing thesis for Netflix is largely intact, and that the bulls have been right all along.
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Source Fool.com
