Should You Invest In Netflix After The 15% Drop?

Shares of video streaming giant Netflix (NASDAQ:NFLX) are underperforming compared to other tech companies after a notable rise last fall.

Should You Invest In Netflix After The 15% Drop? Shares of the Los Gatos, California-based entertainment giant have tumbled more than 12% in the past month, nearly double the losses for Alphabet (NASDAQ:GOOGL) or Meta Platforms (NASDAQ:FB). The stock, which closed at $593.74 on Monday, is down nearly 15% since hitting a record high of $700.99 on November 17. This weakness, which could persist into 2022, in our opinion offers a good entry point for investors looking to buy Netflix at a cheaper price. We're seeing clear evidence that Netflix is ​​outperforming other media companies in the ongoing war. Despite the current stock sale, Netflix's market capitalization is the same as The Walt Disney Company (NYSE:DIS). Considered NFLX's closest competitor and with a huge entertainment empire that includes theme parks, cruise ships and the newly launched Disney+ service, Disney has a market cap of $264 billion after its shares fell 20%. Netfix's market value is at the level of 263 billion dollars. Netflix's extensive list of original content is the biggest factor that gives it a clear lead over other streaming services. Netflix plans to spend approximately $17 billion on original content this year, up 40% from last year. Netflix added 4.4 million paid subscribers in the third quarter of the year and expects a further 8.5 million increase in the three months ended December. The company has a total of 214 million paying subscribers worldwide. Another positive development long-term investors should consider is that Netflix does not depend on debt to fuel its growth. Netflix said that after years of borrowing money to finance the production, it no longer needs outside financing to support day-to-day operations.   Source: Investing.com