Key Points Netflix brought 2025 to a close with a stock split and a blockbuster deal to acquire Warner Bros. The acquisition carries pros and cons for the streaming leader, including the burden of billions of dollars in debt to fund the purchase. Netflix has hurdles to overcome before the deal can close, such as addressing concerns that the combined entity will hold too much pricing power in the entertainment industry. 10 stocks we like better than Netflix › Entertainment giant Netflix (NASDAQ: ...

Core Viewpoint - Pressure is mounting on Lululemon's board for significant changes, with its founder joining the campaign [3] - 23andMe filed for bankruptcy protection, highlighting the focus on profitability in the current investment climate [7] - Netflix announced an $82.7 billion deal for Warner Bros. Discovery, marking a significant consolidation in the entertainment industry [13] Group 1: Company Developments - Lululemon's board faces pressure for major changes as its founder joins the campaign [3] - 23andMe, once valued at $6 billion in 2021, filed for bankruptcy protection, reflecting a shift in investor focus towards profitability [7] - Tesla shareholders approved a record $1 trillion pay package for CEO Elon Musk, tied to ambitious milestones [10] - TikTok divested its U.S. entity, valued at approximately $14 billion, to a joint venture controlled by American investors [11] Group 2: Market Trends - Silver prices experienced their largest one-day drop since 2021, while gold also fell before rebounding [3] - Oil prices started the year in the $70s but ended in the $50s, influenced by increased U.S. crude production and global tariff threats [8] - The Federal Reserve maintained a cautious approach to monetary policy, cutting rates at its last three meetings of 2025 due to labor market concerns [5] Group 3: Industry Consolidation - Netflix's $82.7 billion acquisition of Warner Bros. Discovery includes streaming and movie studio assets, with cable networks to be spun off [13] - Paramount, involved in the bidding war, made a hostile $108 billion takeover offer [13]

Core Insights - The article emphasizes the importance of identifying high-quality growth stocks with a strong track record, particularly focusing on well-known companies that have consistently performed well over the years [1][2] Group 1: Performance of High-Quality Stocks - Cramer highlights the performance of FAANG stocks, noting that many have outperformed the S&P 500 and achieved double-digit gains over the past decade [2] - Research by economist Hendrik Bessembinder indicates that a small number of stocks are responsible for the majority of market gains, with only 17 stocks delivering significant returns [2] Group 2: Future Investment Opportunities - The search for the next high-performing stocks continues, with the belief that there are emerging companies that could replicate the success of current leaders like Amazon and Nvidia [3] - Cramer expresses confidence in the ongoing strength of the current "Magnificent Seven" stocks while remaining vigilant for new opportunities in the market [3]

Core Viewpoint - Both Netflix and Spotify have experienced significant stock declines of 25% to 30% since mid-2023 due to disappointing earnings results, but one company is identified as having stronger long-term competitive advantages that may present a better investment opportunity heading into 2026 [1][2]. Company Performance - Spotify's stock fell after its second-quarter earnings revealed a worsening operating margin and negative earnings per share, with further declines following CEO Daniel Ek's resignation and weak fourth-quarter guidance [4]. - Netflix's stock also declined after its second-quarter earnings, as management indicated that strong results were primarily due to favorable foreign-exchange rates rather than increased consumer engagement. The stock faced additional pressure from a one-time Brazilian tax and concerns over its proposed acquisition of Warner Bros. Discovery [6]. Competitive Advantages - Both companies have been able to raise prices, indicating competitive advantages, with Spotify implementing price changes in 2023 and 2024, while Netflix has consistently raised prices since 2014 [8]. - Spotify's premium pricing includes additional content, such as audiobooks, but it lacks a clear advantage in music content due to the standardization of access to songs across platforms, limiting margin expansion [9][10]. - In contrast, Netflix has developed a unique content library through original productions and exclusive licensing, allowing for greater margin expansion as it amortizes costs over a larger subscriber base [11]. Financial Metrics - Netflix's operating margin is projected to expand by 1.6 percentage points for the year, despite recent challenges, while Spotify has less flexibility to control costs and expand margins [12]. - Netflix shares are valued at less than 30 times analysts' consensus estimates for 2026 earnings, making it a more attractive investment compared to Spotify, which trades closer to 50 times 2026 estimates [13]. Future Outlook - Analysts expect strong earnings growth for Spotify in the coming years, but its high valuation poses risks if estimates are revised downward. Conversely, Netflix may not have the same growth expectations but offers more confidence in achieving targets, potentially driving its stock price back toward all-time highs in 2026 [14].

Core Insights - Investors are showing a bullish stance on Netflix, with significant options trading activity indicating potential upcoming movements in the stock [1][2]. Options Trading Activity - Benzinga's options scanner identified 63 uncommon options trades for Netflix, suggesting that large investors may have insider knowledge about future developments [2]. - The sentiment among big-money traders is mixed, with 38% bullish and 36% bearish positions. Notably, there are 20 put options totaling $11,619,605 and 43 call options totaling $2,220,220 [3]. - The analysis of volume and open interest indicates that major players are targeting a price range of $50.0 to $200.0 for Netflix over the past quarter [4]. Volume and Open Interest - Insights into volume and open interest are crucial for understanding liquidity and interest levels in Netflix's options. Trends in these metrics over the past month reveal significant trading activity within the $50.0 to $200.0 strike price range [5]. Significant Options Trades - Recent significant options trades include: - A bearish put trade with a total price of $10.4 million at a strike price of $102.00 [9]. - A bullish put sweep with a total price of $153.3K at a strike price of $80.00 [9]. - Neutral call trades with total prices of $112.2K and $102.0K at strike prices of $60.00 [9]. Company Overview - Netflix operates a straightforward business model focused solely on its streaming service, boasting over 300 million subscribers globally, making it the largest television entertainment provider [10]. - The company has expanded its revenue streams by introducing ad-supported subscription plans in 2022, diversifying beyond traditional subscription fees [10]. Current Market Position - Analysts have provided an average target price of $129.3 for Netflix, with varying ratings from different firms. Canaccord Genuity maintains a Buy rating with a target of $152, while others have adjusted their ratings to Neutral or Hold with targets ranging from $105 to $150 [12][13]. - Currently, Netflix's stock is trading at $94.0, reflecting a decrease of 0.5%, with an anticipated earnings release in 22 days [15].

Core Insights - The U.S. cable network industry has officially entered a decline stage characterized by falling revenues, shrinking viewership, and significant restructuring of legacy assets [2][4] Industry Trends - The high-stakes bidding war for Warner Bros. Discovery (WBD) represents a pivotal moment for the future of cable television, with Netflix and Paramount Skydance pursuing different strategies [2][3] - Paramount Skydance aims to acquire WBD entirely, while Netflix is focused on its film studio and streaming assets, potentially leading to the separation of WBD's cable assets [3] Financial Data - In 2024, gross advertising revenue for cable networks decreased by 5.9% to $20.2 billion, marking the lowest level since 2007 [6] - Affiliate fee revenue fell nearly 3% to approximately $38.7 billion, indicating a decline in what TV operators pay to carry cable networks [6] - The average cable network experienced a 7.1% decline in subscriber base, dropping to 31.4 million homes [6] Strategic Movements - Major media conglomerates are increasingly abandoning cable networks in favor of streaming services, as evidenced by Comcast's planned spinoff of its cable networks into a standalone entity named "Versant" [5] - The launch of ESPN Unlimited and FOX One streaming platforms in August 2025 further accelerates this trend [5]

Core Viewpoint - Netflix is experiencing a significant decline in share price, down approximately 20% in Q4, underperforming the S&P 500, which gained over 3% [1][2]. Financial Performance - Despite an EPS miss in October's earnings report, Netflix achieved its highest revenue ever, indicating that demand remains strong [3]. - The stock has lost more than 30% since its all-time high in July, returning to levels seen a year ago [1]. Market Sentiment - The sell-off reflects a loss of confidence among investors regarding Netflix's ability to sustain growth rates and concerns over its acquisition of Warner Bros Discovery [2][6]. - The market tends to react negatively to uncertainty, which has compounded Netflix's challenges following the disappointing earnings report [4][5]. Acquisition Concerns - Netflix's bid for Warner Bros Discovery has introduced additional uncertainty, especially with a competing offer from Paramount Skydance [6][7]. - Investors are wary of potential leverage and increased debt that could arise from a bidding war, which may affect Netflix's balance sheet [7]. Technical Analysis - Technical indicators suggest a potential turnaround, with Netflix's RSI nearing oversold territory and a bullish MACD crossover forming [8]. - The stock is stabilizing above the $90 level, which could indicate a recovery rally if maintained [9]. Analyst Outlook - Recent analyst ratings from firms like Morgan Stanley and Jefferies have reiterated Buy ratings, with price targets reaching as high as $152, suggesting a potential upside of around 60% [10][11]. Conditions for Recovery - For a Q1 comeback, Netflix needs to maintain its stock price above $90, gain clarity on the Warner Bros acquisition, and deliver an earnings report that exceeds expectations [12]. - Meeting these conditions could position Netflix favorably in a market dominated by high-performing tech stocks [13].

Group 1 - Victory Energy (001331) has achieved an 11-day continuous rise, indicating strong market interest and potential volatility in its stock price [1] - Jia Mei Packaging (002969) has also seen significant price movement with 9 out of 11 days of gains, suggesting a similar trend of investor speculation [1] - The overall market showed a slight increase with the Shanghai Composite Index rising 0.1% and recording an 8-day upward trend, while trading volume increased to 2.16 trillion yuan, up 235.7 billion yuan from the previous trading day [1] Group 2 - The copper and aluminum sectors are performing strongly, with Jiangxi Copper (600362) hitting a new high since January 2008, and other companies like Zijin Mining (601899) and Luoyang Molybdenum (603993) also reaching historical peaks [1] - The market is experiencing rapid rotation of hotspots, with over 3,400 stocks declining, indicating a challenging environment for many investors [1] - The global metal futures market has resumed a "surge" mode, with COMEX gold, silver, and copper futures all reaching historical highs, reflecting strong demand and market dynamics [1] Group 3 - Fenglong Co. (002931) announced that after a change in control, the company will continue to focus on its original business, with no immediate plans for major changes or asset restructuring [2] - Victory Energy (001331) indicated that if its stock price continues to rise, it may apply for a trading suspension for verification, highlighting potential risks for investors [3] - Jia Mei Packaging (002969) also warned that if its stock price experiences further abnormal increases, it may seek a trading suspension, emphasizing the disconnect between stock price and fundamental performance [4] Group 4 - The U.S. stock market saw slight declines across major indices, with the Nasdaq down 0.09% and Tesla falling over 2%, indicating mixed performance among large tech stocks [5] - Despite the declines, the weekly performance showed positive trends for major indices, with the Nasdaq gaining 1.22% and the S&P 500 up 1.4%, suggesting resilience in the broader market [5]

Core Viewpoint - Netflix, Inc. (NASDAQ:NFLX) is positioned as a strong investment opportunity following its announcement to acquire Warner Bros for $82.7 billion, marking it as one of the best quality stocks to buy before 2026 [1] Group 1: Acquisition Details - The acquisition of Warner Bros is noted as the second-largest merger/acquisition in the post-pandemic period internationally [2] - The deal is expected to take over a year to start showing results for Netflix [2] Group 2: Analyst Perspectives - Kevin Simpson, CEO of Capital Wealth Planning, believes that trimming Netflix's stock at this point would be a mistake due to the potential value of the acquisition [2] - Huber Research downgraded Netflix from Neutral to Underweight with a price target of $102.82, citing the company's historical success in developing its own content and questioning the need for large acquisitions [3] - Baird acknowledges initial investor hesitation but sees long-term benefits from the acquisition that may outweigh near-term risks [4]

Core Insights - Companies often execute stock splits as a sign of strong performance and optimism for continued growth, which can attract investor interest [1] Group 1: Amazon - Amazon has executed four stock splits, with the latest being a 20-for-1 split in June 2022, resulting in a 170% increase in share price since then [4] - Amazon Web Services (AWS) is a leading global cloud provider, benefiting from the AI boom, with significant investments in custom AI chips to maintain market leadership [5] - The advertising segment is growing faster than e-commerce, with high margins and effective advertising opportunities leveraging first-party customer data [6] - In Q3, Amazon reported net sales of $180.2 billion (up 13% year over year) and operating income of $17.4 billion, with AWS growth at 20% [9] Group 2: Netflix - Netflix has performed multiple stock splits, with the most recent being a 10-for-1 split in November 2025 [10] - The company is expanding into high-growth areas like ad-supported tiers, gaming, and live sports, aiming for profitable expansion rather than just subscriber growth [11] - In Q3 2025, Netflix's revenue reached $11.5 billion (up 17% year over year) with an operating margin of 28% and free cash flow of $2.7 billion [12] Group 3: Nvidia - Nvidia has executed six stock splits, with the latest being a 10-for-1 split in June 2024, leading to a 55% increase in share price since then [17] - The company reported record revenue of $57 billion (up 62% year over year) in Q3 2026, driven by data center and GPU sales [18] - Nvidia holds an estimated 80% to 90% market share in the data center AI chip market, with a strong competitive advantage through its CUDA software platform [20][21] - Demand for Nvidia's next-generation chips remains high, with a backlog of $500 billion in orders, and the company is expanding into new markets like robotics and autonomous vehicles [23]