Author argues NFLX is a steal after a 30%+ three-month decline, betting on the Warner Bros. Discovery deal giving Netflix a movie-industry monopoly and driving 50% upside this year.
NFLX — LONG The author argues NFLX is an absolute steal after falling 30%+ over three months despite beating expectations in its recent report, and is putting most of their portfolio into it. The core catalyst is the Warner Bros. Discovery deal, which the author believes is very likely to close and would give Netflix control of the movie industry from production through streaming, creating a monopoly as rivals focus on short-form content. The author sees NFLX rising 50% this year and reaching 200 within three years, while explicitly warning the stock is volatile short term and could fall as low as 75.
Once this deal goes through, Netflix will have the monopoly.