MaDLabbit
02-18
$Netflix(NFLX)$  I continue to be bearish at the moment for Netflix. I think it is overvalued at 23 forward PE and EPS of $2.39.  It have uncertainty over its head with WB deal going on. The longer this uncertainty the worst for its share price. I expect it to drop further to $50 level. I will look to start to take position anything from $60 to $50 level. Do you think Netflix will win the deal?
Netflix +13%: $2.8B Breakup Win for Further Rally?
Netflix surged 13% after walking away from a bidding war and restarting share buybacks. By refusing to raise its offer for Warner assets, the company avoids higher leverage, regulatory drag, and integration risk — while potentially pocketing a $2.8B breakup fee, more than last quarter’s net profit. During deal uncertainty, NFLX had fallen roughly 20%, reflecting merger-risk discounts. With that overhang lifted, valuation compression begins to unwind. Is this just phase one of a 15–25% valuation recovery? Or has the market already priced in the breakup premium and buyback boost?
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