Ge Long Hui·2025-12-08 08:08Group 1 - The core viewpoint of the article is that Netflix is leading a bid of approximately $70 billion for Warner Bros. Discovery's film and streaming assets, which are considered strategically valuable for Netflix [1] - If the acquisition is successful, Netflix's subscriber base could increase from 300 million to over 400 million by merging with HBO Max's 120 million subscribers, raising its market share from 20% to 28% [1] - The report highlights potential challenges, including significant subscriber overlap between the two platforms (approximately 25% to 30%) and short-term execution risks along with rising debt issues [1] Group 2 - The firm projects Netflix's Non-GAAP net profit attributable to shareholders to grow by 19% and 24% year-on-year in Q4 of this year and in 2026, respectively [1] - Based on a compound annual growth rate of earnings from 2025 to 2027, Netflix's current price-to-earnings growth ratio for 2026 is estimated at 1.8 times, compared to the median of 2 times for major U.S. tech companies [1] - The target price for Netflix is set at $142, with a rating of "Buy" [1]