By abandoning the debt-heavy WBD deal, Netflix avoided massive risks to its operations.
Shares of Netflix are now trading for under 30x forward earnings, a great value historically.
After walking away from a high-stakes acquisition of Warner Bros. Discovery (NASDAQ: WBD), Netflix (NASDAQ: NFLX) has pivoted back to organic growth, focusing on high-margin advertising and live events. With global memberships surpassing 300 million, Netflix is no longer just a tech play; it's a diversified media powerhouse. And after the drop in shares following the WBD bid and subsequent breakup, this may be a great value for investors today. I dig into the reasons to buy and why investors may want to choose caution.
*Stock prices used were end-of-day prices of March 18, 2026. The video was published on March 19, 2026.
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Travis Hoium 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. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.