Netflix Pares Losses as Investors Look Past Quarterly Miss

Netflix Inc.’s stock rebounded from its steepest drop in two years, as investors went past disappointing quarterly earnings to focus on long-term growth. “Long-term fundamental trends remain intact,” RBC Capital Markets’ Mark Mahaney, who recommends buying the shares, wrote in a note to investors. The stock has been volatile in the past when its earnings deviated from forecasts because investors are trading on future potential rather than current earnings.