Okay, let’s talk Netflix. For years, this stock felt less like an investment and more like a smug, self-congratulatory friend you couldn’t quite dislike. It just…ascended. From the depths of 2022, it was all upward and onward. But now? Now it’s down 40%. Forty percent! That’s like, the entire run of “Tiger King” in stock market terms. The culprit? A potential acquisition of Warner Bros. Discovery. Apparently, buying a whole other media empire is now considered a risky move. Who knew?
Seriously, though, is Wall Street having a collective panic attack, or is there actual cause for concern? Let’s unpack this, because honestly, I need a new stock to obsess over, and this one’s got potential. Or at least, a good story.
The Warner Bros. Situation
So, Netflix decided it wanted to own Warner Bros. Discovery. It’s like deciding you’re not just a bakery, you’re also going to run a steel mill. A lot more moving parts. This includes intellectual property from HBO and the Warner Bros. studio. Basically, all the stuff people used to watch before everyone got addicted to scrolling.
There’s a bit of a bidding war with Paramount Skydance, which is…intense. It’s like two parents fighting over the last Lego set on Black Friday. Netflix sweetened the deal with an all-cash offer of $82.7 billion. Eighty-two point seven billion. That’s enough money to fund approximately 7,000 seasons of reality TV. To get that cash, Netflix is going to take on a lot of debt. Which, naturally, has investors twitching. And let’s be real, integrating HBO and Warner Bros. into the Netflix app? That’s a logistical nightmare. It’s like trying to fit a Victorian mansion into a tiny house.
And the timing? Impeccable. Just when Netflix is facing competition from…YouTube. Yes, YouTube. Apparently, watching cat videos and makeup tutorials is now a legitimate form of entertainment. Who am I to judge? But it’s eating into Netflix’s viewing hours. Progress is still there, but not at the breakneck pace we’ve become accustomed to.
Is Netflix a Buy Now?
Okay, deep breaths. Despite all the drama, Netflix’s core business isn’t collapsing. Revenue grew 16% in 2025 and is projected to grow 12-14% in 2026. Earnings and free cash flow are solid, clocking in at $13.4 billion and $9.5 billion respectively. That cash, plus whatever they squeeze out of Warner Bros. (if the deal closes), should help them pay down the debt. Eventually.
Honestly, I suspect this whole acquisition thing is just giving Wall Street an excuse to sell Netflix at a reasonable price. Earlier this year, Netflix was trading at a P/E ratio of 60. Sixty! That’s…optimistic. Now it’s at 31. Which, relatively speaking, is…sensible. It might actually make Netflix stock a buy today, despite the risks. It’s like finding a slightly damaged designer handbag at a discount. You know there’s a flaw, but you can live with it. And you get a good story to tell.
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2026-02-24 19:02