Netflix Declines Despite Strong Revenue Growth
Netflix (NASDAQ: NFLX) shares have dropped 36% since reaching an all-time high seven months ago, despite reporting an 18% revenue growth in its latest quarterly results. The streaming giant’s market performance has been negatively affected by its recent acquisition of Warner Bros. Discovery assets for $72 billion, which investors view as a risky move.
Following its fourth-quarter report last week, Netflix only fell 2% the next day, marking the smallest decline post-earnings in three quarters. Analysts project earnings per share to rise by 24% this year, and Netflix is currently valued at less than 23 times its next year’s earnings estimates, positioning it as a potential bargain in the market.
