Netflix Falls After Earnings: Buying Opportunity?

International expansion is expensive, but Netflix is making a really smart bet from a long-term point of view. Should you capitalize on short-term weakness in Netflix as a buying opportunity?

Andrés Cardenal
Andrés Cardenal
Jul 22, 2014 at 7:45PM
Consumer Goods

Netflix (NASDAQ:NFLX) was falling by 5.3% on Tuesday as investors reacted with negativity to the company's latest earnings report. The main reason for concern seems to be the fact that profit margins are forecast to be under pressure as the company accelerates international expansion in the coming quarters. However, Netflix is doing the smart thing by prioritizing long-term growth opportunities over short-term profit margins, and the business is clearly performing remarkably well on multiple fronts. Is the short-term weakness in Netflix creating a buying opportunity for long-term investors?

The slideshow below contains some ideas for investors willing to take a deeper look at Netflix and its potential for growth in the years ahead.