"Wall Street can't seem to stop selling after a 631% trough-to-peak rally from mid-2022 to mid-2025. NFLX stock has fallen by over 33% as many believe the stock was overvalued, especially after its proposed acquisition of Warner Bros. Discovery's (NASDAQ:WBD ) studio and HBO assets for $72 billion in cash. First things first, Netflix's total market capitalization now is $350 billion."
"The company has been making a strong comeback ever since management started cracking down on password sharing and focused heavily on profitability. Netflix reported $12.05 billion in Q4 2025 revenue and beat analyst expectations of $11.97 billion. Sales growth was 17.6%, with 29% net income profit growth. It forecasted a doubling of its ad sales this year to $3 billion and is aggressively expanding."
Wall Street selling accelerated after a 631% trough-to-peak rally and NFLX shares fell over 33% amid concerns of overvaluation tied to a proposed $72 billion Warner Bros. Discovery purchase. Netflix's market capitalization is $350 billion, and the acquisition would markedly increase enterprise value, require substantial debt, and could dent operating cash flow for decades. Warner Bros. has posted losses since 2022 and carries meaningful debt, and Netflix faces a bidding war with Paramount Skydance. Q4 2025 revenue rose to $12.05 billion with strong profit growth, ad sales are forecast to double to $3 billion, and two firms upgraded the stock in late January 2026.
Read at 24/7 Wall St.
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