NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report stock is rising 3.19% to $88.05 in afternoon trading on Tuesday after declining 6.92% in the previous two trading sessions. The market is recovering from a two-day rout triggered when the U.K. voted to leave the European Union.
The drop in Netflix shares and other technology stocks may have created a buying opportunity, RBC Capital analysts wrote in a note, according to MarketWatch.
"Netflix still offers a highly attractive global customer value proposition, a highly experienced and innovative management team, material profitability potential and an increasingly strong competitive position," analysts explained, MarketWatch reports.
Last week, many investors were concerned that the Brexit will cause a recession in the country, but analysts argue that may be favorable for Los Gatos, CA-based Netflix.
The online video streaming company could benefit from consumers seeking affordable entertainment in an economic downturn, analysts added, MarketWatch noted.
Separately, Netflix has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's robust revenue growth, expanding profit margins and increase in net income, which offsets disappointing stock performance, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: NFLX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.