Netflix Nosedive: Is NFLX Stock a Bargain With 60% Upside or a Trap?

"The Netflix ( NASDAQ:NFLX) sell-off has carried into the new year, with shares down 7% year to date or close to 37% from all-time highs hit back in June 2025. Undoubtedly, the bearish moment for Netflix feels worse than it is, especially when you consider that shares were pretty much going parabolic in the first half of last year. While it's been quite a painful plunge for the streamer, several notable analysts are standing by their buy ratings. One notable Wall Street pro has a price target that suggests a whopping 85% upside move could be on the table."

"A Warner Bros. Discovery deal would be a huge win, but it's going to be expensive, and it's not even guaranteed Warner Bros. Discovery ( NYSE:WBD) might be a prized asset that's better off in the hands of Netflix, but at what price? While there are other levers that Netflix can pull to reignite growth without having to spend tens of billions of dollars, questions do linger as to what the firm can do to prevent another one of its vicious valuation resets."

"Now, this isn't the first time that the market has been having a tough time reevaluating the company. Back in 2021 and 2022, Netflix suffered a historic implosion that wiped out 75% of its value. It felt like one of the crashes that stocks don't recover from (at least not anytime within a decade), but, in due time, the stock eventually recovered in around three years."

Netflix shares are down about 7% year to date and roughly 37% below June 2025 all-time highs. Several analysts retain buy ratings and at least one price target implies an 85% upside. A potential acquisition of Warner Bros. Discovery could materially boost content and scale but would be expensive and is not guaranteed. Netflix has alternative levers to reignite growth without spending tens of billions. The company previously lost 75% of its value in 2021–2022 before recovering over about three years. Concerns persist about reaccelerating sales growth if peak subscribers were reached after ad tiers and the freeloader crackdown.

Read at 24/7 Wall St.