Netflix Inc. (NFLX) stock is tanking ahead of its Q2 earnings release on Thursday, July 16. It's now down 32% from a peak price on April 16 ($107.79) right before the Q1 earnings release. However, its FCF is strong and expected to remain high. Value investors are circling as NFLX looks too cheap.
NFLX closed at $73.37 on Friday, July 10. That's well below the 6-month prior low of $76.02 on Feb. 26, when Netflix dropped its Warner Bros. bid. It's only slightly over a recent trough of $70.90 on June 25. Has it gone too far?