Strategic Moves and Market Momentum: Netflix’s High-Stakes Bid and Growth Trajectory

The media industry is watching closely as Netflix, the streaming giant, makes a bold $82.7 billion play for Warner Bros. Discovery (WBD). This potential acquisition, aimed at absorbing iconic content like the DC Comics universe and HBO's library, signals a significant potential shift in the competitive landscape. Alongside this strategic maneuvering, Netflix's core advertising-supported business is demonstrating remarkable strength, raising questions about the company's positioning as it looks toward 2026.

As of the latest close, Netflix shares traded at $94.47, giving the company a market valuation of approximately $400.2 billion. The confirmed bid for WBD is a central pillar of its growth strategy. To help finance the proposed deal, Netflix has secured $25 billion in loan commitments.

However, the path to acquisition is not clear. A competing hostile offer from Paramount Skydance, valued at roughly $108.4 billion, has complicated proceedings. While the WBD board initially showed a preference for Netflix's proposal, the rival's higher price tag intensifies the pressure on Netflix's capital allocation decisions heading into 2026.

In anticipation of a potential merger and the integration of new content, Netflix is already adjusting its own catalog. Notably, the complete eight-film "Harry Potter" series is scheduled for removal from its UK service on January 1, 2026.

Should investors sell immediately? Or is it worth buying Netflix?

Operational Strength and Advertising Surge

Despite the uncertainty surrounding the major acquisition, Netflix's underlying business metrics remain robust. For the third quarter of 2025, the company reported revenue of $11.5 billion, a 17% year-over-year increase.

A primary growth engine is its ad-supported subscription tier. This segment now boasts 190 million monthly active users and is projected to double its revenue contribution in 2025. Netflix's commanding presence is further evidenced by its share of viewing time, capturing 8.6% of total TV viewing in the United States and 9.4% in the UK during Q3.

Key Financial and Corporate Data

• Current Share Price: $94.47
• Market Capitalization: ~$400.2 billion
• P/E Ratio: Approximately 39.5
• Recent Corporate Action: 10-for-1 stock split (effective November 17, 2025)
• Q3 2025 Revenue: $11.5 billion (+17% year-over-year)

Market Sentiment and Price Targets

Wall Street's outlook on Netflix remains favorable following the November 2025 stock split. The consensus twelve-month median price target for the equity stands at $133.00. From the current level near $94.50, this implies a potential upside of around 40%.

• Consensus Rating: Moderate Buy
• Highest Price Target: ~$152.50
• Lowest Price Target: ~$72.00

The upcoming quarterly report, scheduled for January 20, 2026, is viewed as a critical catalyst for the stock's valuation. Investors expect Netflix to provide fresh business figures alongside further details on the progress of its advertising tier and the status of the proposed Warner Bros. Discovery transaction.