Netflix reports earnings on Tuesday, after Co-CEO Ted Sarandos said the business is 'not growing as fast as I want' and the company is laying off about 6% of its workforce. An internal memo seen by CNBC said management remains 'on track to deliver our full year forecast,' though revenue grew 13% last quarter and the full-year outlook calls for roughly 13% to 14% growth, or about $51 billion. The shares have fallen more than 25% this year while the S&P 500 has risen around 13%, and the stock trades at a forward P/E below 19, in line with the S&P 500 average. The author argues the stock deserves a higher valuation given its prospects in sports, gaming and international expansion, and that the sell-off may overstate the risks.
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