Netflix: A Bargain You Shouldn’t Miss (Seriously)

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Right. Let’s talk Netflix. Because honestly, watching its stock price lately has been… painful. Like watching someone repeatedly attempt a soufflé. Thirty-six percent down since its peak? Ouch. The market, meanwhile, is doing a little jig. The sheer irony. It’s almost enough to make you switch to public broadcasting.

They did the stock split thing in November, which is supposed to signal ‘good times ahead!’ but clearly, the market didn’t get the memo. It’s not like they haven’t been trying. Three quarterly reports that landed with a thud. Each one a little more… underwhelming. But that’s not the full story, is it?

You’re Getting Warmer, Warner

The real kicker? The Warner Bros. Discovery deal. Seventy-two billion dollars. Let that sink in. It’s a bold move, bordering on reckless, and the market is… let’s just say, unimpressed. They’re probably picturing Netflix executives throwing money into a very large fireplace. The whispers are predictable: ‘Desperate! They need content! They’re overpaying!’ But here’s the thing… the stock has already shed more than the cost of the acquisition in market cap. More than $100 billion, actually. It’s… a bit much, isn’t it? It’s like they’re giving Warner Bros. Discovery away with every new subscription.

Look, I’m not saying it’s a sensible deal. Sensible went out the window a long time ago. But it is an opportunity. A slightly unhinged, potentially brilliant opportunity. And frankly, I’m always drawn to those.

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The Bounce Will Be Televised

The good news? The bleeding seems to be slowing. Last week’s earnings report only saw a 2% dip. Small potatoes, relatively speaking. And revenue? Up 18%. Not bad. Not bad at all. It’s been a while since they had growth like that. They’re guiding for 12-14% this year, which, let’s be honest, is probably conservative. They always aim a little low, don’t they? It’s a classic tactic. Analysts are predicting 24% earnings per share growth this year and 22% in 2027.

Twenty-three times next year’s earnings? That’s… reasonable. A bargain, even, for a company with over 325 million subscribers. They’re not going anywhere. They’ve built a monster, and monsters tend to stay relevant. So, here’s my advice – and I rarely give advice, because people rarely listen – consider buying. Or adding to your position. Before everyone else figures it out. Because honestly, watching a comeback is far more satisfying than watching a disaster unfold.

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2026-01-26 15:12