Netflix (NFLX) stock is down 2% on June 17 amid conflicting reports that the streaming giant is planning to acquire Canada's Lionsgate Studios (LION).

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Lionsgate's stock soared 14% on June 16 as reports surfaced that Netflix was kicking the tires at the Vancouver-based production company. However, LION stock is now down 8% after The Wrap reported that Netflix has no plans to pursue a takeover of Lionsgate.

Netflix is under pressure to do a big deal that will grow its production capabilities and expand its television and film library. In this year's first half, the streaming giant lost out on two significant takeovers. Netflix lost its bid for Warner Bros. Discovery (WBD) to rival Paramount Skydance (PSKY). More recently, Netflix failed to acquire streaming technology firm Roku (ROKU), which is being purchased by Fox Corp. (FOX).

What's Next for Netflix?

LION stock has risen 60% this year as rumors persist that the production company is for sale. Lionsgate owns film franchises such as "John Wick," "The Hunger Games," and "The Twilight Saga." It also owns popular television series such as "Weeds," "Nurse Jackie," and "Mad Men."

Lionsgate is also heavily involved in film production throughout North America. With a market capitalization of $4.4 billion, analysts see Lionsgate as a more affordable and easier acquisition than either Roku or Warner Bros., and say that the company could give Netflix a boost as the streaming wars intensify.

Is NFLX Stock a Buy?

Netflix's stock has a consensus Strong Buy rating among 33 Wall Street analysts. That rating is based on 25 Buy and eight Hold recommendations issued in the past three months. The average NFLX price target of $115.74 implies 40% upside from current levels.