Netflix Inc’s stock has hit a 52-week low despite exceeding earnings estimates, as it competes in a $100 billion bidding war for Warner Bros. Discovery. Investors are concerned about dwindling margins, increased content spending, and the all-cash offer for the Warner Bros. deal.

Analysts remain hopeful, but investors worry about Netflix’s transition to an all-cash offer and the cessation of its share repurchase program. The company’s content costs are expected to reach $20 billion this year, with shrinking profit margins indicating a return to pre-COVID spending levels.

The market’s response highlights the struggle between long-term growth and immediate financial realities. Netflix’s potential acquisition of Warner Bros. represents a significant expansion, but concerns about debt accumulation and financial stability persist. Balancing growth with financial stability is crucial in navigating the streaming giant’s future.

Read more at Yahoo Finance: Netflix Stock Takes a Dive Despite Record Earnings