Shares of video streaming platform Netflix (NASDAQ:NFLX) now find themselves down close to 30% from their all-time highs, thanks in part to a tough third-quarter result and reports that the firm is in the running to acquire Warner Bros.
The Netflix-Warner Bros. tie-up is moving forward, despite a hostile bid from Paramount Skydance.
Warner Bros Discovery's board rejected Paramount Skydance's $108.4 billion hostile bid, saying it failed to provide adequate financing assurances, in a blow to the David Ellison-run company's ambitions to grow its media empire.
Warner Bros. Discovery's board says shareholders should reject Paramount Skydance's bid.
Netflix is upgraded to a buy after a previous sell, driven by improved financials and a more attractive valuation. At ~$850, NFLX previously traded at 47x earnings, but relative valuation and fundamentals now signal a buy opportunity. My refined investment approach now treats valuation as complementary, prioritizing both quantitative and fundamental business metrics.
Netflix and audio powerhouse iHeartMedia have entered into a new partnership to bring 14 video podcasts exclusively to Netflix in early 2026, the companies announced Tuesday. This represents Netflix's second major step into the podcast space, following its recent collaboration with Spotify.
Media stocks remain in focus, with Warner Bros. Discovery supported by acquisition speculation, Netflix viewed positively on pullbacks, and Comcast seen as a structurally weak chart favoring selling rallies rather than long-term accumulation.
Netflix has agreed to buy Warner Bros. in one of the biggest deals in Hollywood's history.
"We haven't prioritized theatrical in the past because that wasn't our business at Netflix. When this deal closes, we will be in that business.
In a move that has sent shockwaves through Hollywood, Netflix recently announced its plans to acquire Warner Bros. Discovery (WBD) for $82.7 billion.
Netflix remains the streaming sector's clear leader, with robust financials and a pioneering business model that continues to drive growth. Current valuation multiples, including a P/E of 38.7x, are below five-year averages, presenting a compelling entry point amid market uncertainty. Q3 results highlight 17% YoY revenue growth, expanding margins, and surging free cash flow, reinforcing NFLX's operational strength regardless of M&A outcomes.
Netflix recently completed its first stock split in more than a decade. The company is the leading provider of subscription streaming video services, which has fueled years of consistent revenue and profit growth.