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Netflix’s stock has been facing some struggles these last six months.
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Right now, investors are paying close attention to the company’s plan to acquire certain assets from Warner Bros. Discovery.
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This acquisition is running into several obstacles.
The streaming giant Netflix is set to share its fourth quarter 2025 financial results after the market closes on Tuesday, January 20th. Earnings reports can really spark interest—if the company performs better than Wall Street expects or gives some strong future guidance that exceeds predictions.
Currently, the consensus estimate is for Netflix to report earnings of $0.55 per share, which would mark a 28% increase compared to last year. Sales are projected to rise 17% year-over-year to about $11.97 billion. So, do I need to consider buying Netflix before January 20th?
As we kick off this year’s earnings season, it’s possible that investors might be more keen on Netflix’s anticipated earnings than the earnings themselves. This comes as Netflix proposes an acquisition of Warner Bros. Discovery’s film and television studios, including HBO, with an enterprise value of nearly $83 billion. However, this process is generating controversy, especially since Paramount Skydance has made a hostile attempt to purchase Warner Bros. stock.
Warner Bros. seems to prefer Netflix’s offer, but there’s legal action from Paramount, which plans to name its own members to Warner’s board in a proxy fight. For now, everyone’s eyes are on how this situation plays out. Plus, Netflix could also face hurdles in getting regulatory approval.
I don’t think it’s wise for investors to buy Netflix for quick returns. Still, given a more than 28% drop in the stock price over the past six months, I believe long-term investors might want to take a serious look at it. Netflix maintains its position as a leader in the streaming market, and a successful acquisition of HBO could propel it to new heights.
Before making any purchases of Netflix stock, consider this.
According to some analysts, they have identified several other stocks they believe are more promising than Netflix right now. It’s worth noting that these alternatives could present better opportunities for impressive returns in the future.
If you think about it, Netflix has had its ups and downs. If you look back to when it was first recommended in 2004, a $1,000 investment then could mean a substantial return now. Just to give a sense of that scale.
