Netflix Stock: Buy the Dip

Even though streaming-TV service company (NASDAQ: NFLX) stock has fallen sharply since the company reported underwhelming second-quarter revenue growth last week, one analyst is raising his price target for the stock. The analyst is so bullish that he upgraded his rating on the stock from neutral to outperform and boosted his 12-month price target by nearly 50%. Shares could rise another 17% over the next 12 months, he projects.

Here's a closer look at some of the key takeaways from the company's second-quarter update and what's behind this analyst's aggressive $500 price target for the stock.

Interestingly, Netflix's second-quarter results were pretty solid, with earnings per share coming in well above analyst estimates. Revenue for the period was about $8.2 billion and earnings per share were $3.29. On average, analysts were expecting revenue and earnings per share of $8.3 billion and $2.86, respectively. 

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Source Fool.com