Why Is Everyone Talking About Netflix Stock?
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By Prosper Junior Bakiny – Dec 20, 2025 at 4:15AM ESTKey PointsNetflix recently implemented a stock split.The company is on the verge of a blockbuster acquisition.The stock remains attractive given its financial results and prospects. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NFLXNetflixMarket Cap$431BToday's Changeangle-down(0.35%) $0.33Current Price$94.33Price as of December 19, 2025 at 3:59 PM ETIt's not just the company's content that's grabbing attention.Streaming specialist Netflix (NFLX +0.35%) requires no introduction. The company has become one of the most recognizable brands, especially in media. However, Netflix has made plenty of noise over the past couple of months that deserves closer attention. What exactly is going on? And is the stock still worth investing in after all this noise? Let's find out. Image source: Getty Images. Netflix's on-schedule stock split One move Netflix made recently that grabbed a lot of attention was its 10-for-1 stock split. Based on historical patterns, it came right on time for the streaming giant. It also got the market excited for the same reasons stock splits often do. They don't make a company's underlying operations any stronger, but they often signal a strong medium-term outlook for the stock -- or at least management's confidence that the share price will continue rising.Advertisement Netflix's shares also look far cheaper now, at about $100 each, versus the previous price of $1,000 or more. Of course, they aren't actually less expensive than before, based on how stock splits work. Perceptions do matter, though. And the perception of a cheaper stock price -- as well as the ability to attract more buyers -- all played a role in Netflix's stock jumping on news of its split. Since the company implemented it, though, other developments have captured the market's attention. Let's turn to the most important of them. A major acquisition is in the works On Dec. 5, Netflix announced it would acquire Warner Bros. Discovery or at least some assets of this large media company, including film and TV studios, as well as the HBO Max streaming service, among others. The transaction will cost Netflix $72 billion in equity value and an enterprise value of $82.7 billion. There are plenty of reasons -- besides the sheer cost of this deal -- why analysts, Hollywood fans, and pretty much everyone else are interested in this deal. However, for investors, there are several key considerations. First, the acquisition is by no means certain to go through. There will be regulatory scrutiny, especially as several notable lawmakers have already spoken against the deal. ExpandNASDAQ: NFLXNetflixToday's Change(0.35%) $0.33Current Price$94.33Key Data PointsMarket Cap$431BDay's Range$93.46 - $95.5352wk Range$82.11 - $134.12Volume1.2MAvg Vol43MGross Margin48.02% Second, Netflix may have to win a bidding war. Paramount Skydance, another media giant, launched a hostile bid to acquire Warner Bros. after Netflix's announcement. Paramount is willing to pay an enterprise value of $108.4 billion. This bidding war may or may not end soon, and its outcome remains unclear. Third, if Netflix wins, it will fund the acquisition with a $59 billion loan, adding significant debt to its balance sheet. Is Netflix stock a buy? All these developments shouldn't lead us to forget about the company's financial results. It is still performing very well on that front. Management had a rare earnings miss in the third quarter, but that was due to a tax expense in Brazil resulting from disputes with the country's authorities, a problem that shouldn't affect its future financial results. Overall, though, Netflix remains the king of streaming with a large and growing number of users, a rich content library, and plenty of white space ahead as cable TV continues its slow death. The company also has a strong competitive advantage thanks to network effects and a strong brand name. All of those make a strong case in its favor. What about the attempted acquisition of Warner Bros.? If it goes through, it would instantly grant Netflix access to a huge content library. Size wouldn't be the only factor here. The company would inherit highly popular movies and TV franchises, while further expanding its presence in areas of the streaming industry -- such as sports -- where it has been looking to make a push. Leveraging these advantages could help strengthen its user engagement and make it even more dominant in the industry. There will be challenges, but in my view, given Netflix's track record, this acquisition would be a plus for the company. That's why the stock remains attractive right now.Read NextDec 19, 2025 •By Mark Roussin, CPATime to Buy the Dip in Netflix StockDec 19, 2025 •By John Ballard2 Growth Stocks That Have Beaten the Market in Just 2 of the Past 5 YearsDec 17, 2025 •By Anders Bylund2 Dirt Cheap Stocks to Buy With $1,000 Right NowDec 17, 2025 •By Jennifer SaibilNetflix Buying Warner Bros: Terrible Mistake or Best Deal Ever?Dec 16, 2025 •By Catie Hogan3 Reasons Netflix Will Remain a Great Stock to BuyDec 16, 2025 •By Neil PatelShould You Invest $100 in Netflix Right Now?About the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.
Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedNetflixNASDAQ: NFLX$94.33 (+0.00%) $+0.33Warner Bros. DiscoveryNASDAQ: WBD$27.77 (+0.01%) $+0.16Paramount SkydanceNASDAQ: PSKY$13.05 (+0.00%) $+0.04*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement