Down Nearly 40% From Its All-Time High, Is Netflix Stock Too Cheap to Ignore?

2026-02-18 18:56:00 ET

Netflix (NASDAQ: NFLX) has been one of the best investment stories this century. It has delivered impressive shareholder returns since its 2002 IPO, but it has run into a bit of trouble lately. The stock is trading down about 43% from its July 2025 all-time high, and its recent performance prompts an obvious question: Should investors buy the dip?

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Netflix's stock has tanked largely on investor concern about its efforts to acquire multiple media assets from Warner Bros. Discovery (NASDAQ: WBD) . The acquisition transaction will cost Netflix a whopping $82.7 billion. This is structured as an all-cash transaction, which means Netflix, which has about $9 billion in cash and short-term investments on hand, will need to take on a substantial amount of debt to finance the deal.

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