Netflix (NASDAQ: NFLX) appears to have made a smart decision walking away from a bidding war with Paramount Skydance over certain Warner Bros. Discovery assets it had been eyeing.
The total enterprise value of that potential deal was pegged at $82.7 billion, a figure that likely gave Netflix’s leadership serious pause before stepping back from negotiations.
A court ruling has since put the deal on hold for Paramount, suggesting Netflix may have dodged both a financial and legal headache by exiting the race early.
Despite avoiding that deal, Netflix has struggled to find its footing in 2026, with its second-quarter earnings report on July 16 doing little to lift investor confidence.
The streaming giant largely met expectations during that quarterly report, but investors hoping for a meaningful boost in full-year 2026 revenue guidance were left disappointed.
The Netflix stock price dropped immediately following the earnings release, and shares are now down 38% over the last 12 months as of this writing.
That steep decline naturally raises the question many investors are now asking: with the stock so far off its highs, is Netflix finally a buy?
Long-term upside for Netflix shareholders still appears achievable, though it requires investors to recalibrate their expectations for a company that has matured significantly from its disruptive early days.
Netflix is no longer a scrappy start-up that turned streaming mainstream, but rather a seasoned operator capable of steady revenue growth, though not at the pace it once delivered.
Among its more promising growth avenues is the monetization of its gaming division, which currently functions more as a subscriber perk than a meaningful revenue stream.
The company is also exploring video podcasts as a potential source of advertising and sponsorship income, tapping into a global podcasting market valued at $50.8 billion in 2026, according to Grand View Research.
That same market is expected to grow to $131.1 billion by 2030, representing a significant opportunity for Netflix to diversify its revenue beyond traditional subscription fees.
Netflix is also building entertainment complexes under the Netflix House brand, drawing comparisons to Walt Disney’s strategy of developing theme parks around its intellectual property.
Disney’s experience division generated $36 billion in revenue for its full-year 2025, offering a benchmark for what experiential entertainment can contribute to a media company’s bottom line.
The near-term picture for Netflix remains less certain, with few obvious catalysts on the horizon to reignite meaningful investor enthusiasm before the year ends.
Long-term investors may want to consider gradually accumulating a small position or monitoring the stock price to see whether it falls further before committing capital.
