Netflix vs Warner Bros. Discovery

This page provides a detailed comparison between Netflix, Inc. and Warner Bros. Discovery, examining their distinct business models, recent financial performance, and overall market context. Understand the fundamental differences and similarities shaping these major entertainment companies. Educational content, not financial advice.

This page provides a detailed comparison between Netflix, Inc. and Warner Bros. Discovery, examining their distinct business models, recent financial performance, and overall market context. Understan...

Comparison Snapshot

Key Financial Metrics

NFLX

Metric

WBD

$393.52B

Market Cap

$70.83B

51.16%

Potential Profit

-6.58%

Buy

Analyst Rating

Buy

Why It's Moving

Netflix Stock Dips on Weak Q1 Guidance Despite Earnings Beat and Warner Bros. Deal Momentum

Q4 results showed EPS of $0.56 beating $0.55 estimates and revenue at $12.05B above forecasts, with subscribers hitting 325 million globally.
Q1 guidance underwhelmed at $0.76 EPS vs. $0.81 expected and $12.16B revenue vs. $12.19B, overshadowing positives like full-year 2026 revenue outlook of $50.7-$51.7B.
Warner Bros. deal shifted to all-cash $82.7B structure, sparking a brief 1.6% bounce, but regulatory hurdles and competition weigh on sentiment amid a 30% six-month plunge.

Sentiment:

🐻Bearish

Warner Bros. Discovery locks in $72B all-cash Netflix deal amid fierce Paramount bidding war.

Amended deal shifts to all-cash structure, accelerating shareholder vote and sidestepping stock volatility risks while maintaining $27.75 per share valuation plus Discovery Global spin-off value.
WBD board unanimously backs Netflix pact over Paramount's overtures, dismissing the rival's proxy fight and court setbacks as desperate tactics.
Regulatory filings underway with DOJ and EU, paving way for closure in 12-18 months after Discovery separation, underscoring commitment to swift execution.

Sentiment:

🐃Bullish

Netflix Stock Dips on Weak Q1 Guidance Despite Earnings Beat and Warner Bros. Deal Momentum

Q4 results showed EPS of $0.56 beating $0.55 estimates and revenue at $12.05B above forecasts, with subscribers hitting 325 million globally.
Q1 guidance underwhelmed at $0.76 EPS vs. $0.81 expected and $12.16B revenue vs. $12.19B, overshadowing positives like full-year 2026 revenue outlook of $50.7-$51.7B.
Warner Bros. deal shifted to all-cash $82.7B structure, sparking a brief 1.6% bounce, but regulatory hurdles and competition weigh on sentiment amid a 30% six-month plunge.

Sentiment:

🐻Bearish

Warner Bros. Discovery locks in $72B all-cash Netflix deal amid fierce Paramount bidding war.

Amended deal shifts to all-cash structure, accelerating shareholder vote and sidestepping stock volatility risks while maintaining $27.75 per share valuation plus Discovery Global spin-off value.
WBD board unanimously backs Netflix pact over Paramount's overtures, dismissing the rival's proxy fight and court setbacks as desperate tactics.
Regulatory filings underway with DOJ and EU, paving way for closure in 12-18 months after Discovery separation, underscoring commitment to swift execution.

Sentiment:

🐃Bullish

Investment Analysis

Netflix

NFLX

Pros

Netflix leads global streaming with over 300 million subscribers driving strong international growth.
Analysts highlight improving profitability from deeper monetisation and advertising expansion.
Robust content slate including live entertainment like NFL programming supports revenue growth of 16.8% expected in Q4 2025.

Considerations

Recent 30% stock decline from summer 2025 peak signals investor concerns over valuation pressures.
$82.7 billion Warner Bros. Discovery acquisition poses significant balance-sheet strain and financing risks.
Maturing U.S. market requires offsetting growth amid intensifying streaming industry competition.

Warner Bros. Discovery

WBD

Pros

Valuable content library including Warner Bros. IPs attracts acquisition interest from Netflix at $82.7 billion valuation.
Diverse assets spanning film, TV, and gaming provide potential synergies for strategic buyers.
Established studio franchises offer long-term revenue potential through licensing and distribution.

Considerations

Pending $82.7 billion acquisition by Netflix threatens independent operations and shareholder value.
Financial pressures evident from high-profile sale underscoring liquidity and debt challenges.
Maturing streaming exposure heightens regulatory and integration uncertainties for future performance.

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