Paramount

$Netflix(NFLX.US) has a lot of work to do. They have so much competition from Youtube, Disney, Paramount, Peacock, what not.

Netflix woos deepen. After the stock slide on the propose intention to buy Paramount, at the time it was the worry that the huge purchase bill amounting to US$83 billion will weigh down on its gearing, stock down by ~18%, then it was co-founder Reed Hastings who exited Netflix, another ~10% down. And now a slightly above expectation Q2 2026 earning but with a bleak forecast, another ~7% down. The only good news were when the stock split of 10-1 on 30 Oct, 2025, stock rose by ~2% and the termination of Paramount purchase, stock rose ~14% on 26 Feb, 2026. It has dropped more than 40% from US$134 on June 2025 to the current US$68. Do you still believe in Netflix?

$Netflix(NFLX.US)

Netflix remains the global streaming leader, but the investment narrative has shifted from subscriber growth to monetisation. While paid memberships are approaching maturity in developed markets, revenue continues to expand through higher pricing, the advertising-supported tier, stricter password-sharing enforcement and growing live content. Advertising is expected to become one of Netflix’s fastest-growing revenue streams over the next few years, helping diversify its subscription-led business. (Yahoo Finance⁠)

The company’s recent decision to walk away from the Warner Bros. Discovery acquisition may prove strategically prudent. By refusing to overpay after Paramount Skydance raised its offer, management demonstrated capital discipline and preserved financial flexibility for content investments, AI-powered personalisation, gaming and international expansion. Investors initially welcomed the decision, viewing it as a return to Netflix’s historically successful organic growth strategy. (Netflix⁠)

Technically, Netflix remains in a longer-term uptrend despite heightened volatility following the failed WBD bid. Elevated valuations could limit near-term upside, making pullbacks towards key support levels healthier than chasing momentum. Competition from Disney+, Amazon Prime Video and YouTube continues to intensify, yet Netflix’s global scale, industry-leading engagement and expanding advertising ecosystem provide multiple growth levers beyond subscriber additions. This article is intended for informational purposes only and should not be construed as financial advice.