Trade Tracker: Josh Brown buys more Netflix

Core Viewpoint - The stock of Netflix has experienced a significant sell-off following its earnings report, despite strong fundamentals and positive future guidance Financial Performance - Netflix faced a long-standing dispute with Brazilian tax authorities, resulting in a payment of approximately $600 million, which was not included in their earnings guidance [2] - The company raised its free cash flow guidance to $9 billion for the year, up from a previous range of $8 to $8.5 billion [5] - Netflix has $10 billion remaining on its buyback authorization, indicating potential support for the stock price as they buy back shares [5] Stock Analysis - The stock is currently testing its 200-day moving average for the first time since April, which has historically been a good accumulation point for shares [3][4] - The fundamentals of Netflix remain strong, with a net margin of 25% [4] - There is an expectation that buyers will return to the stock if it holds above the 200-day moving average, with any potential break below being temporary [3] Market Position - Netflix boasts over 300 million customers and operates in nearly every country, positioning it as one of the top technology platforms globally [6] - The company plans to expand its offerings by introducing podcasts, aiming to compete more directly with YouTube [6] - There is optimism for Netflix's performance in 2026, suggesting a positive long-term outlook for the stock [7]