Lionsgate is standing on the corner of Hollywood and Vine with a cardboard sign. Paramount Skydance won a $111 billion bidding war for Warner Bros. Discovery (NASDAQ: WBD) and immediately inherited a dozen skeptical state attorneys general.
Even Roku (NASDAQ: ROKU) got a buyout proposal from Fox. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Netflix (NASDAQ: NFLX) sighed, refinanced $1 billion of debt, and went back to work. Closing at $74.21 on Aug. 12, the stock is down 39.4% over the past 52 weeks.
It's also just 14% above the 52-week low. There's a big gap between what Netflix is doing and where the stock is going. Netflix will publish its engagement report once a year instead of twice, starting in 2027.
That is a scheduling change. Shares fell as much as 12% on the news, which suggests the market was already looking for a reason to sell. Trading volume has been elevated since the Warner Bros. drama started in December.
None of that changes the cash-generating engine. Netflix shifted from maximum subscriber growth to profitable growth years ago, and the current numbers reflect exactly that priority. Netflix sports 31.1% returns on invested capital and $13.7 billion in trailing net income on $48.8 billion in sales.
Extract — continue reading at the source.
