Netflix Loses $77 Billion Market Cap After Winning Warner Bros. Bid
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Cap Loss: Since winning the Warner Bros. bid on December 5, Netflix has seen a $77 billion drop in market cap, reflecting market skepticism over its $72 billion acquisition despite the overall market rising over 3% during this period.
- Stable User Base: Despite the stock price decline, Netflix boasts over 300 million paying subscribers and has been profitable every year since its IPO in 2002, demonstrating the strength and sustainability of its business model.
- Cash Flow Performance: With a trailing free cash flow of $9 billion, Netflix showcases its financial health in the industry, allowing it to pursue acquisitions without relying on third-party investors, thereby further solidifying its market position.
- Revenue Growth Trend: Although revenue growth was only 7% in 2023, Netflix's historical data shows it has never experienced a decline in annual revenue, indicating potential for continued acceleration in growth and making it an attractive buying opportunity for investors.
NFLX
$93.305+Infinity%1D
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 139.13 USD with a low forecast of 95.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
28 Buy
7 Hold
1 Sell
Strong Buy
Current: 93.230
Low
95.00
Averages
139.13
High
160.00
Current: 93.230
Low
95.00
Averages
139.13
High
160.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
