Netflix Stock: Should You Buy the Post-Earnings Dip?

NFLX is trading at a forward P/E of 17 after Q3 earnings, a discount to the S&P 500 average of 19, and the stock has fallen 30% year-to-date.

The selling followed a split report. Netflix met revenue expectations and beat on EPS, but full-year guidance projecting 13% revenue growth disappointed the market. Traders read the guide as confirmation that growth is slowing, and the stock has been punished for it.

The Motley Fool analyst behind the piece argues the dip is a buying opportunity for patient investors. The case rests on two points: the valuation discount to the broader market and double-digit growth fundamentals. At 13% projected revenue growth, the company is still expanding at a double-digit pace, which is the core of the bull argument.

Interpretation: a 17x forward multiple against the index's 19x suggests the market is pricing in more deceleration than the 13% guide implies. That gap is the thesis. If growth holds near guidance, the discount has room to narrow. If growth slips below double digits, the cheap multiple may be justified rather than mispriced.

The EPS beat shows profitability is not the issue. Revenue growth trajectory is what the market is repricing.