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News  ›  The Motley Fool

Where Will Netflix Stock Be in 5 Years?

The Motley Fool Logo The Motley Fool By Adam Spatacco
Where Will Netflix Stock Be in 5 Years?

Netflix is pursuing an acquisition of Warner Bros. Discovery to transform from a streaming platform into a full-blown entertainment conglomerate. The deal would provide Netflix with valuable IP franchises (DC Comics, Harry Potter, HBO content), enable new revenue streams through gaming, merchandise, and theme parks, and support its advertising business. The author believes Netflix trades at a justified premium valuation and could become a trillion-dollar company within five years if the acquisition succeeds.

Insights
MDAIW   neutral

Mixed financial performance with increased net loss, reduced revenue guidance, but continued progress on product development and international expansion. Management remains optimistic about long-term growth prospects in 2027-2028.


NFLX   positive

Author views Netflix as a compelling buy-and-hold opportunity with justified premium valuation. The Warner Bros. acquisition is positioned as transformative, enabling Netflix to evolve into a diversified entertainment business with multiple revenue streams and a path to becoming a trillion-dollar company.