Netflix (NFLX) is gearing up to report Q4 earnings on Jan. 20, with analysts expecting $0.55 a share and revenue of $12 billion, reinforcing its dominance in the streaming space. Despite a 34% drop from its all-time high, long-term investors see NFLX as a valuable buy at a discount.

With NFLX trading at less than 9x sales, investors are optimistic heading into earnings, believing a solid subscriber growth report could be enough to spark a rally. The uncertainty surrounding NFLX’s pursuit of WBD assets has caused turbulence in its stock price, but a successful acquisition could be a game-changer.

Reports suggest NFLX may enhance its proposal for WBD, potentially outbidding Paramount with an all-cash offer. Acquiring WBD’s assets would not only eliminate a major overhang but also significantly boost NFLX’s content slate, potentially leading to a premium valuation in the market.

Despite trading below key moving averages, Wall Street analysts recommend holding NFLX shares for the next year. The upcoming earnings release and potential acquisition of WBD assets could be the catalysts needed for a stock price recovery and long-term growth for Netflix.

Read more at Yahoo Finance: Dear Netflix Stock Fans, Mark Your Calendars for January 20