Netflix shares are down as the company reported strong growth but issued cautious guidance. The stock is now 37% lower from recent highs and 11% down for the year. Despite solid Q4 results, revenue growth, and subscriber increase, Netflix’s ad revenue will be a key driver moving forward. With a forward P/E ratio of 26 times 2026 estimates, the stock is now more reasonably priced for investors. The company’s acquisition of Warner Bros. Discovery assets also adds valuable content to its library. Analysts recommend considering other stocks for potential higher returns.

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