Paramount Skydance and Netflix are in a bidding war for Warner Bros, with Paramount offering $32/share and Netflix countering with an all-cash deal. Netflix’s stock has been down 13% amid the bidding war. Despite positive Q4 results, Netflix’s stock may open lower due to lower Q1 guidance. NFLX remains overvalued with a forward P/E of 34.71.

Netflix boasts 325 million subscribers globally, outpacing competitors like Amazon Prime and Disney+. The streaming giant is eyeing growth through sports, advertising, live events, and AI. Netflix is set to double advertising revenue between 2025 and 2026 and leverage AI tools for custom ads. The company’s global reach, original programming, and data-driven personalization give it a competitive edge.

Analysts are cautiously optimistic about NFLX stock, with a consensus rating of “Moderate Buy” and a mean target price of $124.58. The addition of Warner Bros could widen Netflix’s lead in the entertainment landscape but raises concerns about leverage. Despite the uncertainties, Netflix’s growth prospects and strategic initiatives continue to attract investor interest.

Read more at Yahoo Finance: Netflix Just Upped Its Bid for Warner Bros. to All Cash. What Does That Mean for NFLX Stock?