With Paramount's Acquisition of Warner Bros. on Hold and Netflix Down 38%, Is Netflix Stock Finally a Buy?

Netflix (NASDAQ: NFLX) appears to have made the right move by walking away from a bidding war with Paramount Skydance for certain Warner Bros. Discovery assets it wanted. Not only was there the price tag of the deal (a total enterprise value of $82.7 billion) but there may also have been legal headaches, as a court ruling has put the deal on hold for Paramount.

Still, Netflix hasn't quite found its footing, highlighted by its 2026 second-quarter earnings report on July 16. The streaming giant largely met expectations, but investors hoping for a meaningful boost in 2026 full-year revenue guidance didn't get it.

The Netflix stock price dropped immediately after the earnings report, and as of this writing, shares are now down 38% over the last 12 months. The question now becomes, with such a far stock price drop, "Is Netflix finally a buy?"

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I still see long-term upside for Netflix shareholders, but it also requires reasonable expectations. It's no longer a scrappy start-up that turned the concept of streaming mainstream. Instead, it's a mature operator that can still grow its revenue, but not at the same blistering pace as before.

Netflix has promising opportunities to build on through monetizing its gaming division, which currently serves mainly as a bonus feature for subscribers rather than a revenue generator. It can also monetize video podcasts through ads and sponsorships. The global podcasting market is valued at $50.8 billion in 2026 and is expected to grow to $131.1 billion by 2030, according to Grand View Research.

It's also building entertainment complexes, like Netflix House, which isn't on the same scale but is reminiscent of Walt Disney's approach to building theme parks and offering experiences based on intellectual property. For its full-year 2025, Disney's experience division generated $36 billion in revenue.

The short-term picture for Netflix, however, remains less certain. There doesn't seem to be anything on the horizon in the near term that would reignite investor enthusiasm. Long-term investors could consider either gradually picking up a small number of shares or keeping an eye on the stock price to see if it falls further before making a move.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.