By George Glover

Netflix stock has been on a tear ever since the video streamer dropped out of the bidding war for Warner Bros. Discovery. How's that for a plot twist?

Shares are up 17% over the past month, trouncing the broader market. The S&P 500 is down 3.7% over the same period as Wall Street frets that the Iran war will lead to a flare-up in inflation.

And even though Paramount Skydance beat Netflix in the fight for Warner, that's done nothing but hurt the CBS owner's beaten-down stock. Paramount has cratered 16% over the past month as investors worry about the company's mounting debt load. On Thursday, shares closed at their lowest level since August 2009.

Barron's called this one. "Paramount is paying a stiff price, and its winning bid may turn out to be a Pyrrhic victory," we wrote on Feb. 27, after Netflix bowed out of the takeover battle.

Now that the flirtation with Warner is over, the shares are worth a look.

Citi resumed coverage of Netflix at a Buy rating earlier this week. The bank's $115 price target implies upside of 25% from where the stock was trading at Thursday's close.

There's scope for Netflix to raise its full-year earnings before interest and taxes guidance, analyst Jason B. Bazinet said. He added that potential streaming price hikes and share repurchases were two other reasons to buy in.

Buybacks would give the stock an instant boost, and there's growing speculation on the Street that those are coming.

Netflix is set to come out of the bidding war $2.8 billion richer because of the termination fee it's owed by Warner and Paramount. Analysts are forecasting that the company will generate $11.4 billion in free cash flow this year, so there is certainly scope for share repurchases.

The video streamer lost the battle for Warner -- but judging by how the stock has moved since, that's the happy ending investors should have been rooting for all along.

Write to George Glover at george.glover@dowjones.com

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March 20, 2026 08:29 ET (12:29 GMT)

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