When Panic Drives Prices

The fundamental strength of the core business and the exploding advertising segment is currently overlooked by the market in favor of fears regarding the Warner merger, creating an attractive valuation gap.
David Engelhardt
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D. Engelhardt
Reading Time: 2 minutes

The recent sell-off of Netflix shares (i) following the quarterly results on January 20, 2026, resembles more an emotional overreaction of the market rather than a rational assessment of the fundamentals. While the stock market punished the price, the company delivered excellent operational results: With a revenue of $12.05 billion and earnings per share of $0.56, expectations were exceeded, and the psychologically important mark of 325 million subscribers was confidently surpassed. The fact that the stock still came under massive pressure is primarily...

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