Netflix Is Down 6% Since 10-for-1 Stock Split. Does WBD Bid Make It a Buy?[Stocks](https://moneymorning.com/category/article/stocks/) # Netflix Is Down 6% Since 10-for-1 Stock Split. Does WBD Bid Make It a Buy?  by Rich Duprey  November 24, 2025  Share it: ## Netflix Is Down 6% Since 10-for-1 Stock Split. Time to Buy? **Netflix** ( [NFLX](https://moneymorning.com/stocks/nflx/)) split its stock 10-for-1 last week in a bid to make shares more accessible to employees and retail investors by resetting the price from around $1,100 pre-split to roughly $110. However, the stock has slid 6% in the week since, closing Friday at $104.31. It fits a broader downtrend in the shares that peaked at an all-time high of $134 in July, marking a stunning 22% decline overall. The weakness stems from structural headwinds in streaming, including intensifying competition, a pivot away from subscriber growth, lofty valuations, and disappointing revenue forecasts tied more to a weaker dollar than robust demand. Recent third-quarter earnings highlighted an unusual tax expense from an Indian Supreme Court ruling, further eroding confidence despite strong content hits like " _KPop Demon Hunters_."  ## Putting Its Name Up in Lights Netflix, though, is reportedly positioning itself for a game-changing move: a bid for **Warner Bros. Discovery** ( [WBD](https://moneymorning.com/stocks/wbd/)). According to _Bloomberg_, Netflix joined **Comcast** ( [CMCSA](https://moneymorning.com/stocks/cmcsa/)) and **Paramount Skydance** ( [PSKY](https://moneymorning.com/stocks/psky/)) in submitting offers for the beleaguered media giant by the Nov. 20 deadline. Home to HBO, CNN, Warner Bros. studios, and an iconic library featuring franchises like Bugs Bunny and DC Comics, WBD has been under pressure from its $40 billion debt and a slumping linear TV business. Netflix's interest is focused on its content trove, which could supercharge its 300 million global subscribers with premium IP for originals and exclusives. In a strategic shift, Netflix has signaled its readiness to abandon its long-held aversion to theatrical releases if the deal closes. Historically, Netflix shunned cinemas to prioritize streaming, and this concession could unlock hybrid distribution – day-and-date streaming plus box-office runs – potentially boosting marketing buzz and revenue from ticket sales while retaining ad-tier monetization. Success here would transform Netflix from a pure-play streamer into a diversified media powerhouse, accelerating subscriber retention and combating churn in a mature market. Financially, absorbing WBD's library could justify Netflix's $18 billion 2025 content spend, yielding hits that drive 16% revenue growth to $45 billion. But is Netflix likely to prevail? Probably not. Paramount is pushing an all-in acquisition of WBD – including cable assets like CNN and TNT, while Comcast – eyeing similar content grabs – brings deep pockets and Peacock's infrastructure. Netflix lacks traditional media operations and might face antitrust scrutiny for monopolizing streaming content. WBD's board, eyeing debt relief, may favor a full buyer like Paramount over piecemeal asset sales. Analysts peg Netflix's chances below 20%, citing integration risks and cultural clashes. ## Worth Buying at $104? With the stock now trading at a digestible $104, NFLX looks compelling for growth investors. At 32x forward earnings, it's pricey but backed by 29% operating margins and ad revenue doubling in 2025. Subscriber crackdowns and live events like NFL games signal momentum. Absent a WBD win, NFLX stock is a hold: its fundamentals shine, but macro volatility looms. A successful acquisition, though, would make it a resounding buy, accelerating 20% to 30% upside via content synergies and market share gains. Watch the bidding war closely – at this price, Netflix is like a starlet waiting for her big screen opportunity. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Name This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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