FB) page, forced the hands of the Securities and Exchange Commission to adopt social media as a legitimate outlet for corporate disclosures. Like him or hate him, Hastings is good for Netflix and he's good for the stock market. There's never a dull moment. But does that mean the company, which many are struggling to love, is still a good long-term buy for investors? On Monday, these questions were once again raised. Netflix, which I've once described as having had more lives than "24's" Jack Bauer, experienced another brutal episode during the after-hour session Monday, down by as much as 8% following what was (on balance) an excellent second-quarter earnings report. Investors were turning off Netflix even though the company beat profit estimates, while revenue were in line with Street projections. Guidance, however, didn't make the cut. But I wouldn't get carried away just yet. The company reported 49 cents in earnings per share on revenue of $1.07 billion. These results blew last year's marks out of the water when Netflix reported profits of 11 cents per share on revenue of $889 million. Essentially, not only has Netflix grown revenue 20% year over year, but EPS has spiked more than 300%. What's more, the company beat the consensus EPS estimate by 22%. AMZN) Prime, Time Warner's ( TWX) HBOGo and Hulu. That Netflix has been able to string two consecutive quarters of impressive growth should now dispel concerns about the company's ability to execute. The company's "grow at all cost" concept makes it hard for "traditionalists" to fully embrace the stock -- I get that. But these same pundits don't seem to mind raising the pom-poms for Amazon, which embraces similar ideals of "If you build it, they will come."
Are Netflix's costs still rising? Yes. But let's also agree that the growth performance has supported the increased expenses. Netflix said it added 1.2 million streaming subscribers worldwide, ending the quarter with 37.8 million. Of those new subscribers, 630,000 came from the U.S. Here, too, while it may cause plenty of anxiety to see the company's aggressive growth plans, we must also agree these investments are paying handsome dividends. For that matter, I don't believe the company and, in particular, Reed Hastings have gotten enough credit for how well Netflix is now performing internationally, as costly as it may be. Unlike the rivalry that exists within the cable and satellite industry, Netflix subscribers have proven to be remarkably loyal. Don't think for a second that these rivals don't have just as much to fear from Netflix as Netflix should fear them. Let us also remember that Netflix's model offer subscribers more options and costs much less. Time Warner and Comcast ( CMCSA) are constantly fighting for customers who are looking for more choices that an a-la-carte model might bring. They are demanding more flexibility. They get it from Netflix. While Amazon's Prime offer similar advantages, it falls short on selections. Follow @saintssense