Is Netflix Stock a Buy Under $100?

1 hour ago 3
  • Netflix's rally came to a halt pursuing the company's stock-split successful precocious 2025.

  • While the institution missed Wall Street's net estimates successful the 3rd quarter, Netflix inactive has a fig of compelling long-run tailwinds.

  • Netflix banal is trading adjacent its cheapest valuation successful astir 3 years.

  • 10 stocks we similar amended than Netflix ›

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For overmuch of 2025, shares of streaming pioneer Netflix (NASDAQ: NFLX) were connected a roll. Up until mid-November, the banal had gained astir 25% -- beating some the S&P 500 and Nasdaq Composite through that period.

But connected Nov. 17, Netflix completed a 10-for-1 banal divided -- its archetypal successful astir 10 years. Since the divided went into effect, shares of the streaming elephantine person plummeted 19% (as of closing doorbell connected Jan. 9).

Let's excavation into what is driving the selling unit successful Netflix banal close now. With shares trading beneath $100, is present an accidental for astute investors to bargain the dip? Read connected to find out.

Netflix logo connected  apical  of a firm  building.

Image source: Netflix.

In my eyes, determination are 2 superior reasons driving the sell-off successful Netflix stock.

First, the institution missed Wall Street's expectations successful its 3rd 4th net report. While gross continues to accelerate acknowledgment to robust subscriber acquisition and retention, Netflix's bottommost enactment wasn't arsenic beardown arsenic analysts anticipated.

The bigger resistance connected Netflix stock, however, is attributable to the company's pending acquisition bid for the movie and tv assets of Warner Bros. Discovery. Netflix is successful a heated bidding process on with Paramount Skydance Corporation for the Warner Bros. deal.

Concerns astir financing the acquisition arsenic good arsenic integrating Warner Bros.' contented into Netflix's existing contented room person ushered successful a play of uncertainty astir what's adjacent for the streaming powerhouse.

Against this backdrop, it's not uncommon for capitalist sentiment to driblet successful fluid, unpredictable situations.

Over the past fewer months, Netflix released a fig of highly anticipated pieces of contented including the last play of Stranger Things arsenic good arsenic a Guillermo del Toro's diagnostic movie adaptation of Frankenstein.

Piggybacking disconnected this, the institution besides opened up the archetypal 2 locations of Netflix House -- an immersive acquisition that allows fans to link with their favourite shows connected a much idiosyncratic level. Netflix House features games and acceptable recreations inspired by fan-favorite hits including Wednesday, Squid Game, and more.

I deliberation some of these developments could pb to higher-than-anticipated subscriber maturation some successful the 4th fourth and going forward.

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