Wall Street can't seem to stop selling Netflix (NASDAQ:NFLX ) after a 631% trough-to-peak rally from mid-2022 to mid-2025. ...

Wall Street traders are now betting that Warner Bros. Discovery not only will be sold to Netflix, but also easily approved by US and overseas regulators – with so-called “short interest” in the stock recently evaporating, On The Money has learned.For much of the year, the media giant known as WBD had seen increase in its short interest – or bets that its stock will fall. In fact, WBD has been among the more heavily shorted entertainment stocks, according to an analysis by S3 Partners (Full disclosure S3’s f ...

In early November, I reiterated my buy rating on Netflix, Inc. ( NFLX ) as I thought it was a golden opportunity to buy the dip in the stock. The fundamentals were robust, and I concluded that the valuationI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Resp ...

Core Insights - Investors seek stocks that provide substantial gains, and identifying such opportunities requires a structured approach [1] Group 1: Sales Growth - Sales growth is essential for profit generation, enabling companies to achieve efficiencies and create shareholder value [2] - Nvidia serves as a prime example, with its stock price increasing significantly due to strong sales growth in its Data Center segment [2] Group 2: Margins - Margin performance indicates operational efficiency, reflecting a company's ability to generate more profit from sales [3] - Companies like Netflix have successfully leveraged pricing power to enhance margins without losing subscribers [4] Group 3: Innovation - Innovation is critical for maintaining and expanding market share, with Nvidia's advancements in artificial intelligence exemplifying this trend [5] Group 4: Earnings Estimates - Positive revisions in earnings estimates are crucial for stock price appreciation, with the Zacks Rank system categorizing stocks based on these estimates [6] - Micron Technology's stock performance illustrates the impact of favorable earnings estimates, as it maintained a Zacks Rank of 1 (Strong Buy) since August of the previous year [7] Group 5: Common Traits of Market-Beating Stocks - Successful stocks typically exhibit strong sales growth, margin expansion, innovation, and positive earnings estimate revisions [8] Conclusion - Key factors contributing to stock outperformance include robust sales growth, margin expansion, innovation, and favorable earnings estimate revisions [9]

Core Insights - Netflix reported solid earnings with Q4 revenue exceeding $12 billion, an 18% increase year-over-year, and earnings per share of $0.56, slightly above Wall Street projections. However, the stock dropped due to management's forecast of slower revenue growth for 2026, projecting a growth rate of 12-14% compared to 16% in 2025 [2][3][10] Financial Performance - Q4 revenue was over $12 billion, up 18% from the previous year [2] - Earnings per share stood at $0.56, slightly above expectations [2] - The company reached approximately 325 million global paid memberships, adding 23 million subscribers in 2025 [2][3] Growth Outlook - Management anticipates a revenue growth rate of 12-14% for 2026, a decrease from 16% in 2025 [2][7] - The ad business is growing significantly, with ad sales expected to double in 2026 from $1.5 billion in 2025 [6][7] - The company is transitioning into a more mature phase, focusing on sustaining its business rather than hypergrowth [3][4] Strategic Moves - Netflix amended its bid for Warner Brothers Discovery to an all-cash offer of $27.75 per share, valuing the deal at approximately $72 billion, or $83 billion including debt [9][10] - The acquisition aims to secure a vast content library, enhancing Netflix's competitive position in the streaming market [10][15] - The all-cash structure is designed to provide immediate value to Warner Brothers shareholders and reduce stock price volatility [10] Debt and Financing - Netflix's debt is projected to increase from $34 billion to $42 billion to finance the acquisition, raising concerns about financial flexibility [10][11] - The company had $15.8 billion in debt at the end of 2020, which has been decreasing as it used debt to acquire content [11] - Management believes they can handle the increased debt and maintain cash flow, indicating confidence in long-term financial stability [11][12] Market Position - Netflix is recognized as the leader in streaming, but faces increased competition from platforms like YouTube, which is gaining market share [4][6] - The company is adapting to a more mature business model, focusing on content acquisition and strategic investments rather than rapid growth [3][4] - The acquisition of Warner Brothers Discovery is seen as a critical move to bolster Netflix's content offerings and market power [15]

The Netflix (NASDAQ:NFLX) sell-off has carried into the new year, with shares down 7% year to date or close to 37% from all-time highs hit back in June 2025. Undoubtedly, the bearish moment for Netflix feels worse than it is, especially when you consider that shares were pretty much going parabolic in the first half of last year. While it's been quite a painful plunge for the streamer, several notable analysts are standing by their buy ratings. One notable Wall Street pro has a price target that suggests a ...

Core Insights - Comcast's Q4 2025 results showed mixed performance, with revenue slightly increasing by 1.2% to $32.3 billion, while earnings declined due to a prior year's one-time tax benefit of $1.9 billion [1] Media Performance - Peacock ended 2025 with 44 million subscribers, a 22% increase year-over-year, and generated $1.6 billion in revenue with adjusted losses of $552 million, compared to $1.3 billion in revenue and a loss of $372 million in the previous year [2] Theme Parks - Theme Parks' EBITDA rose 24% to over $1 billion for the first time, driven by the contribution from Epic Universe and increased per capita spending and attendance, with revenue jumping 22% to $2.9 billion [5] Connectivity and Broadband - The company experienced domestic broadband customer net losses of 181,000, while total domestic wireless line net additions were 364,000, indicating growth in the wireless segment despite challenges in broadband [8] Strategic Changes - Comcast completed the spin-off of Versant Media, focusing on streaming, live sports, and premium content, while maintaining strong free cash flow and a disciplined capital allocation strategy [7] Competitive Landscape - Comcast lost a bidding war for Warner Bros. assets, which were acquired by Netflix in a cash deal, highlighting the competitive pressures in the media and entertainment sector [9]

Group 1: Stock Performance - Netflix stock has plummeted nearly 30% over the last six months, with a significant drop of about 27% since the summer [1][2] - In 2025, shares initially rose by approximately 37% in the first half of the year before entering a downward trend [1] Group 2: Economic Factors - As a services business, Netflix is vulnerable to macroeconomic themes like inflation, which can impact consumer purchasing power [2] - Despite inflation and tariffs affecting the economy, recent GDP growth indicates that consumer spending remains resilient [2] Group 3: Acquisition Context - The main drag on Netflix stock is attributed to its ongoing contest with Paramount Skydance for the film and television assets of Warner Bros. Discovery, rather than economic factors [3] - Wall Street tends to dislike unpredictability, which is a significant concern surrounding acquisitions [3] Group 4: Business Model Insights - Investors should focus on Netflix's business model rather than the specifics of the Warner Bros. acquisition [4] - The last five years have been transformational for Netflix, with accelerating revenue and improving gross margins indicating efficient business operations post-pandemic [5] Group 5: Customer Retention and Growth - Netflix has maintained customer retention through smart capital allocation and content refreshes, which keeps its library updated [8] - The company's recurring revenue model and profitable subscriber economics have led to a surge in earnings growth, creating a virtuous cycle of strong retention rates and steady growth [9] Group 6: Valuation Considerations - Netflix's forward price-to-earnings (P/E) multiple of 27 may not seem like a bargain at first glance [10] - The stock is trading at a considerable discount compared to less profitable streaming companies and is near its cheapest level in five years based on forward earnings estimates [12]

Netflix (NASDAQ: NFLX) performed well for most of 2025, but the company's shares dropped after it released its third-quarter earnings. It then announced a 10-for-1 stock split that helped it regain some of those losses, but recent developments, especially regarding its proposed blockbuster acquisition of Warner Bros. Discovery, have weighed on the company. The stock took another dive following its most recent quarterly update. It is now down by 27% over the past six months. Is Netflix worth buying on the d ...

Key Takeaways AAPL expects double-digit iPhone sales growth in fiscal Q1, led by strong iPhone 17 demand. Services revenues are estimated at $30B, up 14% Y/Y, boosted by Apple TV and installed base. Mac sales are projected to rise just 0.9% Y/Y, while iPad revenues are expected to grow 5%. Apple’s (AAPL) first-quarter fiscal 2026 results, to be reported on Jan. 29, are expected to have benefited from strong iPhone 17 sales. The company expects iPhone sales to grow in double digits year over year in the to-b ...