Netflix’s stock split in late 2025 led to a pause in its rally, causing a drop in valuation. Despite missing earnings estimates, Netflix remains strong with long-term potential. Shares are trading at their lowest in three years. The company’s acquisition bid for Warner Bros. assets contributes to investor uncertainty.

The decline in Netflix stock is due to a third-quarter earnings miss and the pending Warner Bros. Discovery deal. The company faces challenges in financing and integrating new content. Investor sentiment is affected by the ongoing uncertainties.

Netflix released popular content like Stranger Things and opened Netflix House, boosting subscriber growth expectations. The company’s targeted advertising business is growing, with ads featuring Netflix content. The recent stock decline may present an opportunity for long-term investors.

Netflix’s forward P/E ratio is near a three-year low, making it a potentially good buy opportunity. Despite challenges with the Warner Bros. deal, Netflix’s core business remains solid. The company’s innovative content and advertising strategies position it for long-term success.

Investors considering Netflix should weigh the risks and opportunities. The Motley Fool recommends other stocks over Netflix for potential growth. Stock Advisor’s strong track record of returns can guide investors in building a diversified portfolio.

Read more at Yahoo Finance: Is Netflix Stock a Buy Under $100?