Why Netflix Stock Is Still a Buy

(NASDAQ: NFLX) isn't the stock market darling it once was. While the video streamer was once squarely featured in the FAANG group of fast-growing tech stocks, it's the only one of the group to be left out of the "Magnificent Seven," one of the current groupings of elite tech stocks.

The company suffered a setback as the pandemic wound down -- subscribers briefly dipped and profits fell -- but Netflix has adapted to the new streaming landscape and is thriving once again, even as its legacy media competitors continue to fall flat. It launched an advertising tier, something investors had long asked for, giving customers a lower-priced subscription option and advertisers a way to reach a massive audience. It also cracked down on password-sharing, which boosted revenue, much of which went straight to the bottom line.

It may have fallen out of the stock market's vanguard, but the streaming stock just set another all-time high following its third-quarter earnings report, and the numbers show why.

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Source Fool.com