Down 29% Since June, Is Netflix Stock a Buy?

• Netflix shares are down astir 29% from the extremity of June.

• The streaming elephantine posted double-digit gross maturation and beardown escaped currency travel successful Q3.

• A Warner Bros woody adds regulatory hazard and could unit the valuation.

• 10 stocks we similar amended than Netflix ›

Shares of Netflix (NASDAQ: NFLX) are down astir 29% from the extremity of June. Part of the maturation stock's descent was driven by a station third-quarter net sell-off mostly tied to a one-time Brazilian taxation charge, but a bully information of it has travel much recently, fueled by merger play that is present spilling into a bidding war.

At the aforesaid time, the streaming specialist's underlying concern has been firing connected each cylinders, featuring double-digit gross maturation and soaring escaped currency flow. And the company's 3-year-old advertizing concern is besides increasing quickly.

So, the pullback's timing -- during a play of concern spot for the institution -- makes the banal much absorbing again. But are shares inexpensive capable to marque them a buy, oregon should investors hold for a little price?

Netflix amazed the marketplace successful aboriginal December erstwhile it agreed to get Warner Bros. Discovery's (NASDAQ: WBD) movie and tv studios, including its namesake Warner Bros.' studios and its movie and tv studios HBO and HBO Max. The monolithic woody is valued astatine astir $72 billion.

Investors person not had overmuch clip to digest it, due to the fact that the communicative has already shifted. Paramount Skydance (NASDAQ: PSKY) escalated things with a hostile, all-cash tender connection for Warner Bros. Discovery astatine $30 per stock -- a bid it valued astatine astir $108.4 billion. Paramount described the connection arsenic "superior" and suggested it would person an easier way with regulators.

Paramount's competing bid highlights the uncertainty of the woody and the aggravated contention successful streaming. And a competing bid is not the lone hazard to the deal. There's regulatory risk, too. Further, Netflix has agreed to wage Warner Bros. Discovery a $5.8 cardinal termination fee, nether definite conditions, if the woody is not completed. Finally, a drawn-out combat could besides distract management.

The irony is that Netflix was doing exceptionally good without this acquisition.

Netflix's third-quarter gross roseate 17.2% twelvemonth implicit twelvemonth -- an acceleration from 15.9% successful the 2nd 4th of 2025. Third-quarter operating borderline was 28.2%, held backmost by a astir $619 cardinal disbursal tied to a quality with Brazilian taxation authorities. Free currency flow, however, soared 21% to astir $2.7 cardinal successful Q3.