Nearly 20% From Its 52-Week Low, Is Netflix Stock Set to Rally Even Higher?

Netflix’s stock appears poised for a rebound after falling to a new 52-week low of $65.08. The downturn followed the company’s earnings report last month, when investors sold the shares despite “solid growth” over previous years. The article notes that the stock was trading around $77 on Thursday, roughly 18% above the July low. It attributes the selling partly to a July 16 second-quarter report: Netflix beat expectations on the bottom line but missed on revenue and issued guidance described as insufficient for growth investors. Still, management expected 12% growth for the third quarter. The piece says Netflix trades at a price-to-earnings multiple of 24 versus 26 for the S&P 500, and remains down about 18% year-to-date.