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Netflix Inc. (Nasdaq: NFLX) stock was up big today on an earnings boost. But don't be fooled.
Yes, Netflix earnings were mostly positive.
The digital content vendor handily beat Wall Street's per-share earnings estimate of $0.44, posting an EPS of $0.72. However, it fell slightly under revenue estimates with sales reaching $1.48 billion. That sent Netflix stock up almost 18% by mid-afternoon.
But investors tempted to buy Netflix stock need to be cautious. On FOX Business' "Varney & Co." today (Wednesday), Money Morning Capital Wave Strategist Shah Gilani warned viewers of Netflix's volatility.
Just look at what happened on Oct. 15, 2014. The stock was trading close to $450. The next day, it fell to around $360. It lost almost 20% in one day. That's the kind of volatility you could get if you buy Netflix stock.
But that's not the only reason Gilani is down on NFLX stock.
To see why Gilani does not think Netflix stock is a buy despite its strong earnings, check out his TV appearance below.