Netflix Shares Decline Amid High P/E Ratio
Netflix (NASDAQ: NFLX) has seen its shares drop significantly, trading 29% below its peak as of December 12. Despite the decline, the stock currently carries a high price-to-earnings (P/E) ratio of 40, making it an expensive investment option at this time.
In the past decade, Netflix shares have soared 701%, however, the company recently missed Wall Street estimates in its Q3 financial report, raising concerns about its proposed acquisition of Warner Bros. Discovery. Analysts suggest that potential investors should keep Netflix on their watch lists but wait for a more favorable entry point.
