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01-21

NETFLIX JUST DROPPED A MASSIVE BOMB! 💣🍿

​Netflix stock is tumbling (down over 4%) after hours, but the numbers aren’t even the real story. The company just announced a game-changing move that has Wall Street freaking out. 😱

​Here is the ELI5 breakdown of what is happening:

​The Good News: They actually made more money than expected last quarter. People are still subscribing like crazy (over 325 million users!). ✅

​The "Meh" News: Their forecast for the next few months was a little weak. Wall Street hates uncertainty. 📉

​The HUGE News: Netflix said, "We are stopping stock buybacks." Usually, companies buy their own stock to keep the price up. Why did they stop?

​The Reason: They are hoarding cash to buy Warner Bros. Discovery (WBD) in an ALL-CASH deal. 🤯

​Think of it like this: Netflix is like a rich friend who stopped buying fancy dinners (buybacks) because they are saving every penny to buy a massive mansion (WBD/HBO).

​This means Netflix could soon own Harry Potter, Batman, and Game of Thrones. But acquiring a massive company is messy, expensive, and risky. That’s why investors are nervous right now.

​So, the big question:

Do you think Netflix owning HBO and DC Comics is a genius move for the long run, or is this going to be a disaster? 👇


@TigerStars  @Tiger_comments  @Daily_Discussion  @TigerEvents  @TigerWire  

Netflix +13%: $2.8B Breakup Win for Further Rally?
Netflix surged 13% after walking away from a bidding war and restarting share buybacks. By refusing to raise its offer for Warner assets, the company avoids higher leverage, regulatory drag, and integration risk — while potentially pocketing a $2.8B breakup fee, more than last quarter’s net profit. During deal uncertainty, NFLX had fallen roughly 20%, reflecting merger-risk discounts. With that overhang lifted, valuation compression begins to unwind. Is this just phase one of a 15–25% valuation recovery? Or has the market already priced in the breakup premium and buyback boost?
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