Key Points
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Netflix’s shares (NASDAQ: NFLX) are 38% below their 52-week high, amid concerns over a pending acquisition of Warner Bros. Discovery for $82.7 billion.
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The company’s price-to-earnings ratio currently stands at 32.9, reflecting a historically cheap valuation.
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Netflix has 325 million members and reported $45 billion in revenue for 2025, with a fourth-quarter operating margin of 24.5%.
Investors are expressing concerns over Netflix’s future as it embarks on a significant acquisition, putting it at risk of taking on $52 billion in debt. This uncertainty follows a period of successful organic growth that traditionally avoided large transactions.
The market is reacting to these developments, leading some investors to question whether now is the time to buy, despite Netflix’s scale and strong brand presence in the streaming industry.
