$Netflix(NFLX.US)

Context: Netflix beat estimates for earnings and matched views on sales in the third quarter. But the internet television network missed Wall Street's targets for the current period and fell in after hours. The company earned 87 cents a share on sales of $12.87 billion in the September quarter. Analysts had expected earnings of 82 cents a share on sales of $12.87 billion. On a year-over-year basis, Netflix earnings rose 47% while sales climbed about 12%. For the current quarter, Netflix forecast earnings of 67 cents a share on sales of $13.44 billion. Wall Street was modeling Netflix earnings of 73 cents a share on sales of $13.52 billion. In the same quarter last year, the subscription streaming video leader earned 56 cents a share on sales of $12.05 billion. The company narrowed its 2026 full-year forecast, saying it now expects revenue to reach $51.1 billion, a 13% increase over the year prior. This is on the low end of the range Netflix provided during its previous earnings report of between $51 billion and $51.4 billion and below Wall Street's expectations of $51.2 billion for the year.

My Trade: I am buying the dip again, but not aggressively. Fundamentals and earnings statistics prove that Netflix is still growing, albeit not at the high rate that everyone expects. Buy when others are fearful, but manage the expectations and size of purchase.

Takeaway: "With intense competition and an explosion of content competing for consumer attention, strategic clarity and excellent execution are critical" was what Netflix promised in their shareholder letter. I still believe in the healthy but slower growth of the company, along with better ad revenue growth. However, this is going to be a long ride. @Captain's Treasure