Investors have a rare opportunity to buy one of America's highest-quality stocks at a steep discount.Netflix (NFLX +0.09%) operates the world's largest streaming platform for movies and television shows, with over 300 million paying members. The company is using its immense scale and soaring profits to outspend its competition when it comes to creating and licensing content, further cementing its dominance.Despite Netflix's continued success, its stock has declined by 32% from its mid-2025 peak. However, it ...

Netflix Inc. (NASDAQ:NFLX) is one of the best forever stocks to buy according to hedge funds. On December 17, Jefferies reiterated a Buy rating on Netflix Inc. (NASDAQ:NFLX) and settled on a $134 price target. The bullish stance follows reports that the company is contemplating acquiring Warner Bros. Discovery. Jefferies Affirms Buy Rating on Netflix, Inc. (NFLX) on Warner Bros. Discovery Acquisition Prospects Twin Design / Shutterstock.com Warner Bros has already rejected a hostile takeover from Paramo ...

Core Viewpoint - Netflix is pursuing a significant acquisition of Warner Bros. Discovery's assets, indicating a strategic shift for the company in the streaming industry [1] Company Overview - Netflix has a history of pivoting into adjacent businesses and leading new media directions, showcasing its adaptability and innovation [2] - Originally a DVD rental service, Netflix transitioned to streaming in 2007 and launched its first original content in 2012, establishing itself as a major player in the media landscape by 2015 [4] Investment Performance - An investment of $500 in Netflix stock in late 2015 would have grown to $3,869 today, reflecting a 674% gain, significantly outperforming the S&P 500's total return of 301% over the same period [5] - As of the latest data, Netflix's market capitalization stands at $431 billion, with a current stock price of $94.33 [6] Market Position and Future Outlook - Despite its growth, it is unlikely that Netflix will replicate the same level of returns over the next decade, as it is no longer a small, emerging company [7] - Nevertheless, Netflix has consistently shown the ability to influence trends and evolve within the media industry, suggesting it could remain a valuable asset in a diversified investment portfolio [7]

Core Viewpoint - Netflix has experienced a volatile year, with shares currently up 7% in 2025, but still trailing the broader market, amid discussions of acquiring Warner Bros Discovery assets [1][2] Financial Performance - Revenue for the first nine months of 2025 reached $33.1 billion, reflecting a 15% year-over-year increase [5] - Operating income rose by 28% during the same period, and free cash flow was reported at $2.7 billion in Q3 [5] - Despite a recent dip in stock price, Netflix's fundamentals remain strong, showcasing a cost advantage over competitors [4][5] Strategic Initiatives - Netflix's primary focus remains on creating compelling content for its global membership base, with plans to double ad revenue this year [6] - The company is expanding its offerings by including exclusive videos of popular podcasts and venturing into live sports, including rights to MLB games and FIFA Women's World Cup events [7] Market Sentiment and Valuation - Netflix shares are currently trading 29% below their peak, with a price-to-earnings ratio of 39.8, which has decreased by 23% over the past year [2][12] - The market has reacted negatively to Netflix's proposed acquisition of Warner Bros Discovery, with concerns over taking on $59 billion in debt [10][12] - Investors are cautious, with some viewing the stock as not a bargain despite its strong business fundamentals [12]

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Netflix on Wednesday said it will add a soccer simulation title to its gaming portfolio, as the streaming giant looks to leverage the FIFA World Cup 2026 tournament to deepen its video game push. ...

Core Viewpoint - Warner Bros. Discovery (WBD) is favoring a merger with Netflix over a hostile takeover bid from Paramount Skydance, emphasizing the Netflix deal's superior value and lower risk for shareholders [2][4][5]. Group 1: Warner Bros. Discovery's Position - WBD's board rejected Paramount's offer of $30 per share, recommending shareholders accept Netflix's offer of $27.75 per share, which includes a separation of its cable networks from HBO and HBO Max [2][4]. - WBD's board chair stated that Paramount's offer was inadequate and posed significant risks to shareholders, particularly regarding financing issues [3][4]. - WBD shareholders have until January 8 to decide on Paramount's offer, with a potential $2.8 billion fee payable to Netflix if the deal collapses [4]. Group 2: Netflix's Strategy and Offer - Netflix's co-CEOs praised WBD's decision, asserting that the merger agreement is in the best interest of stockholders and will enhance consumer choice and value [5][6]. - The Netflix-WBD deal is projected to close within 12 to 18 months, with Netflix confident in obtaining regulatory approvals [6][10]. - The total equity value for WBD stockholders in the Netflix deal is $27.75 per share, comprising $23.25 in cash and $4.50 in Netflix stock, along with additional value from the separation of Discovery Global [11]. Group 3: Competitive Landscape - The global entertainment market is highly competitive, with Netflix currently holding an 8% TV view share in the U.S., while a combined Netflix-HBO/HBO Max would only increase this to 9.2% [15]. - If Paramount were to acquire WBD, its market share would rise to 14%, highlighting the competitive stakes involved in the merger [15]. - Netflix aims to leverage Warner Bros.' successful theatrical film division and HBO's prestige television to enhance its content offerings and market position [20][21]. Group 4: Commitment to Creative and Consumer Value - Netflix is committed to preserving Warner Bros.' film library and ensuring theatrical releases with standard windows, marking a shift in its business model [22][24]. - The merger is expected to create more opportunities for creators and enhance the overall entertainment industry by combining Netflix's global reach with Warner Bros.' production capabilities [20][21]. - Netflix emphasizes its track record of value creation and operational excellence, aiming to continue this legacy through the merger with Warner Bros. [13].

Core Viewpoint - The Warner Bros. Discovery (WBD) Board recommends stockholders approve the merger agreement with Netflix, viewing it as the best option for long-term value, while urging rejection of the unsolicited offer from Paramount Skydance Corporation (PSKY) [1][2][5] Financial Details - The merger agreement values the transaction at $27.75 per WBD share, totaling an enterprise value of approximately $82.7 billion, with an equity value of $72.0 billion [2][6] - WBD stockholders will receive $23.25 per share in cash and $4.50 per share in Netflix stock, along with additional value from the separation of WBD's Global Linear Networks business, Discovery Global, planned for Q3 2026 [7][2] Strategic Rationale - The merger is positioned as pro-consumer, pro-innovation, and pro-growth, enhancing value for both stockholders and consumers [3][19] - Netflix aims to leverage Warner Bros.' theatrical film division, television studio, and HBO brand to strengthen its content offerings and expand its global reach [3][19][20] Market Position - Netflix currently holds a 8.0% share in U.S. TV viewership, while a combined Netflix-HBO/HBO Max would increase this to 9.2%, still trailing behind YouTube and Disney [12][13] - The competitive landscape is highlighted, with Netflix and Warner Bros. complementing each other, providing opportunities for creators and enhancing the overall entertainment industry [19][20] Operational Commitments - Netflix commits to maintaining traditional theatrical releases for Warner Bros. films, ensuring a focus on prestige television and high-quality storytelling [21][22] - The merger is expected to create more opportunities for creators and enhance the production capabilities of both companies, with a focus on original programming [20][19]

Investors shouldn't worry too much about how the Warner Bros. acquisition plays out.If you want to watch a drama unfold, you can stream a movie on Netflix (NFLX +0.20%), or you can read the latest headlines regarding the company's attempt to buy Warner Bros. Discovery (WBD 0.90%). At the beginning of December, Netflix announced a $72 billion bid to buy Warner Bros., which also owns HBO Max.NASDAQ : NFLXNetflixToday's Change( 0.20 %) $ 0.18Current Price$ 93.95Key Data PointsMarket Cap$428BDay's Range$ 93.71 ...

Would buying Warner Bros. give Netflix too much power? The streaming giant is telling regulators it won't, and antitrust experts say the answer ultimately depends on how you define who Netflix competes with.Does Netflix compete with only paid streaming services, a market where it dominates? What about the TV dinosaurs it disrupted, or the social video services nipping at its heels? Could sleep even be a competitor, as its cofounder Reed Hastings famously suggested? Rival suitor Paramount Skydance has slam ...