Key Points
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The stock market can be irrational but often identifies high-quality companies. Buying stocks when they are unpopular may offer substantial rewards.
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Netflix (NASDAQ: NFLX) is set to acquire Warner Bros. Discovery’s assets in an $82.7 billion deal, pending regulatory review. Currently, Netflix’s stock is down 30% from its all-time high.
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Uber Technologies (NYSE: UBER) leads the U.S. ride-sharing market with about a 75% market share, generating nearly $50 billion in revenue over the last year and experiencing a 20% year-over-year growth.
Netflix is poised to become a dominant force in entertainment if its acquisition of Warner Bros. closes, but faces a debt increase to approximately $75 billion. Despite market concerns, analysts project a 24% compound annual growth rate in earnings, indicating potential for rebound and future growth.
Meanwhile, Uber continues to thrive, reporting $8.6 billion in free cash flow over the past year, despite fears of competition from autonomous vehicles. The company’s strategic partnerships in autonomous technology could bolster its long-term prospects.
