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Howard Smith, The Motley Fool
Fri, April 17, 2026 astatine 11:59 AM CDT 2 min read
Netflix (NASDAQ: NFLX) released its archetypal quarterly study since the play surrounding the acquisition of Warner Bros. Discovery ended with Netflix declining to rise its bid and receiving a $2.8 cardinal payout instead.
Shares tanked adjacent aft a coagulated quarter, arsenic investors were hoping for amended guardant guidance. One Wall Street expert thinks today's determination is simply a large buying accidental for investors.
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The Warner Bros. contention was a distraction for investors. The banal plunged from astir $120 to $75 per stock arsenic that process was playing out. It recovered overmuch of that earlier past night's net announcement. After a beardown net report, investors wanted to spot the institution boost guidance for this year. Today's banal absorption came due to the fact that absorption failed to bash so.
Netflix besides trades astatine a precocious multiple. Even aft today's drop, it is valued astatine a guardant price-to-earnings ratio of astir 31. But that is good beneath the three-year mean of 37. Of course, that benignant of aggregate means investors expect continued beardown growth.
Revenue grew 16% successful Q1, and the institution volition request to support oregon adjacent rise that level moving forward. Seaport Research Partners expert David Joyce thinks today's driblet is simply a buying accidental arsenic maturation continues adjacent without Warner Bros. He raised his terms people from $115 to $119 per stock aft the report, according to Barron's.
Just arsenic the acquisition play gave investors a bully accidental to bargain Netflix stock, today's determination could connection a akin accidental if the concern continues to occurrence connected each cylinders.
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