Netflix stock has had a rollercoaster year, hitting a 63% rally before dropping due to missed earnings and Warner Bros. deal uncertainty. Netflix announced a definitive agreement to acquire Warner Bros., while Paramount Skydance offered a $30 per share deal for WBD, compared to Netflix’s $27.75 per share deal. Seaport Research Partners reduced NFLX stock’s price target to $115, causing some panic selling. Despite the drama, Netflix reported strong Q3 2025 metrics, including $11.5 billion in revenue and $2.7 billion in free cash flow.

Business metrics for Netflix show a positive outlook, with strong free cash flow, cash reserves, and a growing advertising business. Analysts have a consensus “Moderate Buy” rating on NFLX stock with a mean price target of $131.34, implying a 38% upside potential. While uncertainty remains, valuations look attractive with a forward price-earnings ratio of 36.67. Analysts also suggest that losing the Warner Bros. deal bidding war could be a positive for Netflix in the long run.

Read more at Barchart: Wall Street Is Souring on Netflix Stock Amid Warner Bros. Deal Drama. Is It Time to Ditch NFLX Now?