Netflix Has Plummeted Over the Past Year and Just Dropped Again on Earnings. At 22 Times Profits, Is It a Buy?

TV specialist Netflix (NASDAQ: NFLX) reported its second-quarter results on Thursday, and the report itself was uneventful. Revenue rose 13% year over year to $12.6 billion, matching management's forecast, and operating margin came in slightly ahead of plan.

Shares still fell about 7% on Friday, to $68.95 -- within a few dollars of their 52-week low.

The drop extends a miserable stretch. Netflix stock has lost more than 40% of its value over the past year, and it's down about 46% from its 52-week high of $126.71.Continue reading