Netflix Stock Is Pricey Even After Warner Bros.-Induced Selloff
Market Intelligence Analysis
AI-PoweredNetflix's stock price is considered high, trading at 28 times expected earnings, which is higher than its peers and major indexes, despite a recent 2% drop.
Market impact analysis based on bearish sentiment with 80% confidence.
Article Context
“Netflix is not a screaming ‘buy’ at the current price levels,” said Christopher Brown, a financial adviser in private wealth management at Synovus Securities, who added that he owns Netflix shares personally and Synovus does in its portfolios. The shares, which fell about 2% on Friday to the lowest intraday since April 9, are currently trading for around 28 times expected earnings over the next 12 months, which is a higher valuation than video streaming rivals like Walt Disney Co., Amazon.com Inc. and Alphabet Inc., which owns YouTube, as well as the S&P 500 and Nasdaq 100 indexes. Paramount Skydance Corp., which also is bidding for Warner Bros. and operates Paramount+, trades for less than 13 times forward earnings.
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