Netflix (NFLX) is Still a Buy Today Irrespective of Whether They Acquire Warner Brothers

As of January 16, 2026, Warner Bros. has rejected Paramount's multiple offers for a takeover. At one point, Paramount bid for 102 Billion, compared to Netflix's 72 billion bid.  Paramount then tried to sue Warner Bros. but that got rejected too.  How can they possibly think they can sue a company for not letting them buy them?  That seems ridiculous to me personally.  

In my last article from November 18, 2025, I rated NFLX a buy at a near fair valuation.  On that day, it's stock price was around $100/sh.  I maintain my buy rating as of this writing.  The stock has fallen to $89/sh since November 18th and it's possible that this has something to do with uncertainty on whether NFLX will get to take over WBD or not.  With the stock falling to $89/sh, it's valuation is even better with a blended P/E of 34.54X and a Fair Value Ratio of 40.79X. 

In the above image, notice how the black stock price line is below the orange fair valuation line.  NFLX has an earnings growth rate of 40.79%! 

The company has an excellent operating cash flow growth rate of 41.33% and an "A" S&P credit rating.  The OCF of 41.33% is a crucial metric showing strong financial health of this company. 

NFLX has good potential to reach around $160/sh by 12/31/2027 which would be an 82% increase from today's price of $88/sh. 

Since 12/31/2012, Netflix has had a 37.98% compound growth rate compared to 14.80% for the S&P 500.  This is nothing short of spectacular, wealth-making performance.  A $10,000 investment in late December 2012 would be worth roughly $665,000 today!   

Best wishes to all investors!

References: 

Disclaimer: This blog has been created for sharing my personal investment ideas only. I do not receive any compensation for this blog or the content within. I am not an investment advisor or professional. This blog is my own personal opinion and is not meant to be a recommendation of the purchase or sale of any stock or ETF. Please do your own due diligence and research before deciding to purchase any investments of your own.



 

 

 

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