Isn’t an acquisition like Warner Bros. supposed to be good news? More content, bigger library, stronger market position… but Netflix has been dropping pretty steadily this month. It’s down over 12% even though the market isn’t doing that bad and other streaming names like Disney and Amazon are green.
Is this because of antitrust? Like maybe the market thinks regulators won’t let the deal go through? Or is it more about their recent earnings miss and high valuation?
Why is Netflix still going down after the Warner deal news?
byu/sedate_matron instocks
Posted by sedate_matron
30 Comments
It was downgraded recently
Loser is always the buyer due to taking on debt. This time its an insane amount for an overpriced company.
I guess the news that Larry E is personally guaranteeing the financing for Paramount bid the pendulum is swinging back the other day
Debt debt debt. It’s a shit load of debt to take on. GTFO now.
Time to buy. 30% off highs. This will be a blip in 5 years
Consider it a gift and buy.
Netflix deal is like going raw dog with a hooker feels great but might catch smth nasty. This deal might get blocked by trump, if it goes through there’s a huge amt of debt comes with it n I believe Netflix mentioned smth like it’ll take 3-4 yrs to have + roi
Paramount (and Daddy Larry) are being sore losers. Looking like the deal may take a battle.
It went down when they announced they were going for it. It went down when WB chose the Netflix deal. It went down after that. And then today it goes down when Paramount “sweetened” their hostile bid. It just goes down and down. They have seemingly screwed shareholders and should have never even gone for it.
Acquisitions sound bullish, but markets usually price risk first. This drop looks way more like earnings and valuation compression versus an antitrust fear. When a stock is priced for perfection, any miss gets punished. I’m seeing this as a buying opportunity, personally.
Humans are irrational.
Netflix needs to walk away and buy something like Spotify to add new ways monetize media.
It’s just pure technicals. It was supposed to go down, regardless of whether any news comes out or not. Because it was way too overbought on technicals at 1300. It had to check the 900 support level sooner or later. And people just tend to attach news to that downturn even though the stock was already down to 1000s before the Netflix HBO merger even news came out. Nothing goes up in straight line.
Same thing will happen to Google for the next multiple months now. And of course, you will see a news will be attached to justify that downturn regardless.
Up about 160% in two years probably has something to do with it, lol. 😂
Because buyers in a deal have to overpay to make the deal
Why do stocks do anything? There’s probably not one single reason.
Because Wallstreet likes the sell first ask questions later – it’s called the “Wallstreet knee Jerk Reaction”
What would be a good price to buy in? Looking to pick up a few shares.
I don’t know about this case but often the stock of the buyer will dip because buying something costs money. Company’s costs, initially will be higher. After acquisition it eventually contributes to the bottom line.
Because of ethical investing. It is probably a good buy, but I am sick of getting LGBTQ+ shoved down my throat. It tells me they aren’t focused on quality and instead the messaging.
I know it’s not exactly the same situation, but after Google split back in 2022 it dipped for a while. I am up 100% on it now. Hoping for the same with Netflix
It’s a sell the news situations. Also, people taking profits at the end of year isn’t uncommon. There is always risk when integrating an old existing company.
How many new subscribers will be needed to offset the $72 billion purchase price?
Sell.
Because they groom children
because if it were that easy we would all be rich
it’s too expensive
| Is this because of antitrust? Like maybe the market thinks regulators won’t let the deal go through?
maybe it’s because the market thinks regulators WILL let the deal go through
Priced in
It was at >50 PE. Doesnt matter how much a stock has gone up or down. It matters what its at right now. It could still go down another -25% to be a reasonable price
Media mergers have been a mixed bag for investors in the past. Warner Bros/Discovery was a disaster, Disney/Fox has helped Disneys library, but Disney stock has been underperforming for years.