Down More Than 30% From Its High, Is Netflix a Good Buy Right Now?

Group 1 - Netflix's shares have significantly declined, nearing a 52-week low of $82.11, amid market skepticism regarding its $72 billion acquisition attempt of Warner Bros. [1] - The stock has dropped over 30% from its peak of more than $134 last summer, raising questions about whether this presents a buying opportunity [2] - Currently, Netflix's stock trades at 37 times its trailing earnings, which is above the S&P 500 average of just under 26 but below its five-year average [3][8] Group 2 - The last time Netflix's stock traded at a lower earnings multiple was during the 2022 market crash, after which it tripled in value by 2023 [4] - Warner Bros. has struggled under AT&T and now as part of Warner Bros. Discovery, raising concerns about the potential integration with Netflix [5][6] - Given the uncertainties surrounding the Warner Bros. acquisition, investors may seek a greater discount on Netflix's stock to ensure a margin of safety [7]