Netflix Stock: Buy, Sell, or Hold?
In recent years, (NASDAQ: NFLX) has presented a clear growth story for investors: It's the largest subscription streaming service, operating on a global scale, leveraging its operational efficiency and pricing power as it expands.
But confusion entered the story earlier this month when Netflix announced a definitive agreement to acquire Warner Bros. Discovery's (NASDAQ: WBD) Warner Bros. studios and HBO's streaming business in a cash-and-stock transaction valued at $27.75 per WBD share, representing approximately $82.7 billion in enterprise value. The deal not only introduces risks to the business, but it may also inadvertently expose weaknesses.
Ultimately, Netflix now arguably looks less like a focused platform with an attractive business model and more like one with a capital-intensive need to own more franchises and studios in order to continue growing rapidly.
Source Fool.com
