Netflix Stock Is Pricey Even After Warner Bros.-Induced Selloff

Summary

Ed Ludlow speaks with Bloomberg's Felice Maranz about Netflix after its sharp selloff tied to Warner Bros. Discovery deal speculation. Maranz says investors are questioning the deal's costs, integration risk, and regulatory hurdles, and that Netflix's valuation is not cheap enough to attract buyers despite trading below its historical P/E norm. The takeaway is that Netflix is not a screaming buy even after the pullback.

• Netflix shares have fallen about 28% in less than three months amid Warner Bros. Discovery deal speculation.
• Investors are concerned about deal cost, integration risk, and a looming regulatory fight.
• Netflix lacks experience integrating large acquisitions.
• Netflix fell about 2% on a day when the S&P 500 rose.
• Netflix's P/E multiple is below its historical norm but still not cheap enough to entice buyers.
• The stock is not seen as a screaming buy.