Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.

Warner Bros. Discovery, Inc. - Series A

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Средний индекс, незначительно вырос. Отток средств из шортов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from shorts has decreased, but remains significant.

Netflix NFLX continues to sharpen its advertising business as a driver of revenue expansion, remaining on track to deliver approximately $3 billion in ad revenues this year, roughly double the prior year figure. The gap between average revenue per membership on the ad-supported tier and the standard ad-free plan continues to narrow. This gap represents a direct opportunity for incremental revenues as advertising capabilities mature.
Netflix is expanding its demand sources. The company continues to build out its proprietary Netflix Ads Suite and broader programmatic capabilities. In the second quarter of 2026, it expanded its AI-powered tools across the full advertising lifecycle, spanning planning, creative production, campaign management and reporting. Netflix is also extending programmatic access to Pause Ads and live inventory, widening participation from smaller advertisers.
Accessibility is reinforcing this growth path. Netflix's ad-supported plan in the United States is priced at $8.99, functioning as a low-cost entry point that continues to draw new members into the ecosystem while widening the base against which advertising inventory can be monetized.
Live programming is reinforcing advertiser demand. Netflix closed its 2026 U.S. upfront in August, nearly doubling ad commitments from the prior year. Game sponsorships for the 2027 FIFA Women's World Cup are fully sold out, with in-game inventory nearly exhausted as well. Advertisers are also showing strong interest in NFL, WWE and MLB programming.
NFLX is guiding 13% to 14% revenue growth for 2026, with advertising expected to complement subscription growth from memberships and pricing. As ad tech investment and live event demand continue to build, Netflix's advertising business is positioning itself to become an increasingly material contributor to overall revenue expansion.
How NFLX is Placed Against Peers
Netflix's advertising push mirrors similar strategies at Disney DIS and Warner Bros. Discovery WBD. Disney is leaning on its ad-supported reach across Disney+, Hulu and ESPN+ to strengthen streaming profitability, while Warner Bros. Discovery is expanding ad-tier distribution across its Max platform to support margin gains.
Both Disney and Warner Bros. Discovery are treating advertising as a central lever for improving per-user economics, an approach broadly consistent with Netflix's own strategy. However, Netflix's expansive live sports slate and upfront momentum position it to build advertiser demand at a pace that compares favorably against both Disney and Warner Bros. Discovery going forward.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have declined 17.1% year to date, underperforming both the Zacks Broadcast Radio and Television industry and the Zacks Consumer Discretionary sector’s fall of 13.7% and 7.6%, respectively.
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 20.77X, higher than the sector’s 16.42X. NFLX carries a Value Score of D.
NFLX’s Valuation
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share, down by a penny over the past 30 days. This indicates a 41.9% increase from the previous year.
Netflix, Inc. Price and Consensus
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NFLX's Ad Business Focus: Can it Support Revenue Expansion?

Key Points
The director disposed of 71,539 shares for an estimated value of ~$2.0 million on August 13, 2026.
The transaction reduced direct equity holdings by 68% through this single transaction.
The disposal involved only directly held shares and did not include indirect holdings.
Fazal F. Merchant, a Board of Directors member, sold 71,539 shares of Series A Common Stock in Warner Bros. Discovery, Inc. (NASDAQ:WBD) on August 13, 2026, as disclosed in an SEC Form 4 filing.
Transaction summary
Transaction value
$2.0 million
Post-transaction shares (directly held)
33,067
Post-transaction value
$917,609.25
Transaction value based on SEC Form 4 weighted average sale price ($27.75); post-transaction value based on August 13, 2026 market close ($27.75).
Key questions
What was the impact of this transaction on the director's total equity position?
Fazal F. Merchant divested 68% of his direct position in the company, leaving him with a residual holding of 33,067 shares. No indirect holdings were specified in this filing.
How does the current market value of the remaining holdings compare to the transaction size?
The value of the remaining direct position is $917,609.25, while the shares sold in this transaction realized ~$2.0 million at the $27.75 per share execution price.
What is the company's financial profile at the time of this transaction?
Warner Bros. Discovery reported trailing twelve-month revenue of $36.1 billion and a net loss of $3.2 billion.
How does the transaction volume compare to the company's market capitalization?
The ~$2.0 million sale is small relative to the $69.6 billion market cap of Warner Bros. Discovery as of the August 13, 2026 market close.
Company Overview
Share Price (as of market close 2026-08-13)
$27.75
Market Capitalization
$69.6 billion
Revenue (TTM)
$36.1 billion
Net Income (TTM)
-$3.2 billion
Company Snapshot
Warner Bros. Discovery operates a media and entertainment portfolio across diverse businesses, including studios (theatrical film production and television programming development), network (traditional broadcast and cable distribution), and direct-to-consumer (streaming platforms including HBO Max), generating revenue through content licensing, advertising, and subscription services.
The company produces revenue through multiple monetization channels including theatrical box office distribution, licensing television content to internal networks and external partners, advertising-supported streaming services, subscription-based direct-to-consumer platforms, and traditional linear television broadcasting.
Warner Bros. Discovery serves a global audience spanning theatrical moviegoers, television viewers across broadcast and cable networks, streaming subscribers, and media buyers seeking premium content licensing, with particular strength in North American and international markets.
Warner Bros. Discovery is a major global media and entertainment conglomerate with substantial scale, commanding a market cap of $69.6 billion and generating $36.1 billion in annual revenue. The company is strategically positioned across the full entertainment value chain, from content creation through theatrical and television distribution to direct consumer engagement via streaming platforms.
Despite near-term profitability challenges reflected in trailing 12-month net losses, the company maintains competitive advantages through its extensive content library, established distribution relationships, and integrated streaming ecosystem serving both advertising-supported and subscription-based consumer segments.
What this transaction means for investors
The Aug. 13 sale of Warner Bros. Discovery stock by Director Fazal Merchant came at a time when the company's anticipated merger with Paramount Skydance was delayed due to a lawsuit filed by a coalition of 12 U.S. states led by California. The states are challenging the company's acquisition on the grounds it violates antitrust laws. As a result, Paramount Skydance management has threatened to move its business out of California.
Merchant's disposition was substantial. He sold 68% of his direct holdings, leaving him with 33,067 shares. Whether this means he lacks faith in Paramount Skydance's ability to complete the merger is not known. However, Merchant plans to end his time on the Warner Bros. Discovery Board in 2027.
His impending departure and the uncertainty around when the Paramount Skydance deal will close may have been catalysts in Merchant's decision to sell the bulk of his directly held shares. The merger could be delayed as far out as June of 2027 unless a legal ruling is reached before then.
Should you buy stock in Warner Bros. Discovery right now?
Before you buy stock in Warner Bros. Discovery, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Warner Bros. Discovery wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!*
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Robert Izquierdo has positions in Paramount Skydance and Warner Bros. Discovery. The Motley Fool has positions in and recommends Warner Bros. Discovery. The Motley Fool has a disclosure policy.

A Warner Bros. Discovery Director Sells Nearly 70% of Their Direct Stake Worth $2 Million as the Company's Paramount Skydance Merger Runs into Challenges

Key Points
Netflix walked away from an $82.7 billion bid for Warner Bros. Discovery and passed on buying Roku, avoiding the debt its rivals took on.
The latest sell-off followed a decision to publish engagement data annually instead of twice a year, starting in 2027.
The stock looks like a bargain at 23.4 times trailing earnings today, down from roughly 47 times in recent years.
Every media giant is being dramatic this year. What else is new, right?
Comcast is setting NBCUniversal loose. 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.
Missed Nvidia in 2009? 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.
What's in that gap?
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. Trailing earnings are up 34.8% over the past year. Revenue rose 17.6% on the same basis.
Fiscal discipline for the win
Netflix traded around 47 times trailing earnings across 2024 and 2025. Today, it trades at 23.4 times trailing earnings, 19.5 times forward estimates, and 27.7 times free cash flow, with a PEG ratio of 0.89. The average analyst price target of $94.20 implies 26.9% upside.
Management keeps declining to do anything expensive. Netflix bid $82.7 billion for Warner Bros. Discovery, then walked when the number got silly. It looked at buying Roku back and passed.
Instead, the company is quietly wiring AI production tools into about 300 titles. Games and the real-world Netflix House attraction are growing. Meanwhile, Netflix still expects to generate $12.5 billion of free cash flow in 2026.
A 39.4% haircut on a business growing earnings by 34.8% looks like an opportunity, not a warning. Netflix stock looks tempting in this dip.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 13, 2026.
Anders Bylund has positions in Netflix. The Motley Fool has positions in and recommends Netflix, Roku, and Warner Bros. Discovery. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 39%, Should You Buy the Dip in Netflix Stock?

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in JPMorgan Chase & Co (Symbol: JPM), where a total volume of 29,417 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 41% of JPM's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $365 strike call option expiring August 14, 2026, with 3,933 contracts trading so far today, representing approximately 393,300 underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $365 strike highlighted in orange:
Lam Research Corp (Symbol: LRCX) saw options trading volume of 44,903 contracts, representing approximately 4.5 million underlying shares or approximately 40.8% of LRCX's average daily trading volume over the past month, of 11.0 million shares. Particularly high volume was seen for the $350 strike call option expiring August 14, 2026, with 4,273 contracts trading so far today, representing approximately 427,300 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $350 strike highlighted in orange:
And Warner Bros Discovery Inc (Symbol: WBD) options are showing a volume of 99,248 contracts thus far today. That number of contracts represents approximately 9.9 million underlying shares, working out to a sizeable 40.5% of WBD's average daily trading volume over the past month, of 24.5 million shares. Particularly high volume was seen for the $20 strike put option expiring December 18, 2026, with 32,757 contracts trading so far today, representing approximately 3.3 million underlying shares of WBD. Below is a chart showing WBD's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for JPM options, LRCX options, or WBD options, visit StockOptionsChannel.com.
Further JPM Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Thursday Option Activity: JPM, LRCX, WBD

Key Points
The transaction involved the exercise and subsequent sale of ~591,000 shares at $27.05 per share, generating total proceeds of ~$16.0 million.
The disposition represented 52% of the insider's total direct equity holdings in the company.
The activity consisted of a direct sell following the exercise of stock options with an exercise price of $11.02 per share.
The sale was executed following a 146% one-year total return for the stock as of the August 10, 2026 transaction date.
Gerhard Zeiler, President, International at Warner Bros. Discovery, Inc. (NASDAQ:WBD), sold 591,038 shares of Series A Common Stock on August 10, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summary
Transaction value
$16.0 million
Shares sold
591,038
Post-transaction shares (directly held)
537,436
Post-transaction value
$14.44 million
Transaction value based on SEC Form 4 weighted average sale price ($27.05); post-transaction value based on August 10, 2026 market close ($26.87).
Company snapshot
Sector: Communication Services
Industry: Entertainment
Market capitalization: $67.9 billion
TTM revenue: $36.1 billion
TTM net income: -$3.2 billion
Employees: 35,500
Warner Bros. Discovery, Inc. operates as a prominent global media and entertainment conglomerate. Its operations are structured across three key divisions: Studios, Network, and Direct-to-Consumer (DTC).
Key questions
How does the execution price compare to the underlying exercise cost?
The shares were sold at a weighted average price of $27.05 per share, representing a premium over the $11.02 exercise price for the 591,038 options converted and sold during this transaction.
What remains of the insider's equity position in the company?
Following the disposal, Gerhard Zeiler directly holds 537,436 shares of Series A Common Stock and 188,193 direct derivative securities, which include both vested and unvested awards.
How did the stock perform leading up to this transaction?
As of the transaction date on August 10, 2026, the company had achieved a one-year total return of 146%, and the stock was priced at $27.07 as of the August 11, 2026 market close.
What is the relative scale of this transaction compared to the company's financials?
The $16.0 million sale occurred at a time when the firm reported a trailing-twelve-month net loss of -$3.2 billion on $36.1 billion in total revenue.
Company Overview
Share Price (as of market close 2026-08-11)
$27.07
Market Capitalization
$67.9 billion
Revenue (TTM)
$36.1 billion
Net Income (TTM)
-$3.2 billion
Company Snapshot
Warner Bros. Discovery operates a diversified media and entertainment portfolio spanning theatrical film production, television programming development, and direct-to-consumer streaming platforms, generating revenue across Studios, Network, and DTC segments.
The company generates revenue through multiple channels including theatrical film distribution, licensing television content to internal networks and external partners, advertising-supported and subscription-based streaming services, and traditional broadcast and cable network operations.
The company serves global audiences including theatrical moviegoers, television viewers across broadcast and cable networks, streaming subscribers, and content licensing partners, with a primary focus on English-language markets and international expansion.
Warner Bros. Discovery is a major global media and entertainment conglomerate with a market capitalization of $67.9 billion and TTM revenues of $36.1 billion, positioning it among the largest content creators and distributors in the industry. The company leverages its extensive library of intellectual property and multi-platform distribution capabilities across theatrical, linear, and streaming channels to reach diverse consumer segments. Despite current net losses, the company's strategic focus on direct-to-consumer growth and content monetization across multiple platforms reflects its competitive positioning in the evolving media landscape.
What this transaction means for investors
Although Zeiler did not directly address the reasoning behind the options exercise, the company’s impending sale to Paramount Skydance may explain the timing of his recent stock transaction.
Assuming contractural obligations did not dictate this sale, It is likely the upcoming merger either forced this move or at least created enough uncertainty that it would be best to exercise his options.
The deal may have also made it a great time to sell shares in the entertainment stock without additional pressure. Since Paramount is paying a premium, that almost fueled the aforementioned 146% gains in the stock over the last year.
Either way, it is typically not a great time to buy a stock once investors hear of a merger. Looking to the future means looking at Warner Bros Discovery as a part of Paramount, and we do not yet know exactly how that will affect the financial metrics of the combined entity.
Considering that level of uncertainty, investors are likely best off noting Zeiler’s options exercise and waiting until the merger closes before buying shares.
Should you buy stock in Warner Bros. Discovery right now?
Before you buy stock in Warner Bros. Discovery, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Warner Bros. Discovery wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warner Bros. Discovery President Sells $16 Million Stock After 146% Rally

Key Points
Bill Ackman's Pershing Square Capital has taken a sizeable stake in Netflix.
The company's double-digit revenue growth, expanding profitability, and compelling valuation make it an attractive opportunity.
Shares of Netflix (NASDAQ: NFLX) charged sharply higher Thursday morning, climbing as much as 4.7%. As of 11:30 a.m. ET, the stock was still up 3.52%.
The streaming video specialist got a vote of confidence from one of the world's most notable hedge funds.
Missed Nvidia in 2009? 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 »
A "substantial discount"
Word broke late yesterday that Pershing Square Capital Management, helmed by billionaire Bill Ackman, had taken a new, sizable stake in Netflix. In its quarterly shareholder letter, the hedge fund disclosed a 4.9% stake in the streaming giant. Pershing is known for owning just a few companies at a time -- usually less than a dozen -- and taking sizable positions.
Beyond the purchase itself, the commentary explaining it was what got investors excited. Since the hedge fund exited its previous position in early 2022, "Netflix has since effectively won the streaming wars," Pershing wrote.
"We expect Netflix to compound revenue at a double-digit growth rate, with content costs growing more slowly than revenue, driving continued margin expansion ... the company's current valuation multiple represents a substantial discount." The statement went on to say that it was "highly attractive in terms of business quality and prospective earnings growth."
There's no arguing with Ackman's logic. Netflix stock is currently down 42% from its peak last year, as its now-defunct attempt to acquire Warner Bros. Discovery, rumors of other failed acquisition attempts, and concerns about engagement have given some investors pause.
That hasn't stopped Netflix from pulling a number of levers to improve its position. The expansion of live sporting events is attracting a new generation of viewers, and the company's lower-cost advertising tier -- which expands Netflix's addressable market to more price-sensitive viewers -- is on track to surpass $3 billion in revenue this year.
On the bright side, the stock now sells at just 24 times earnings, well below its three-year average multiple of 43. That's an attractive price for a company with a track record of double-digit revenue growth and expanding profitability.
Taken together, these factors illustrate why Netflix is an underappreciated bargain. Investors would do well to follow Ackman's example and pick up shares of the streaming leader while they're on sale.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Danny Vena, CPA has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Netflix Stock Rallied Today

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Warner Bros. Discovery (WBD) Q2 2026 Earnings Call Transcript

Key Points
Money manager Ross Gerber thinks Netflix stock is cheap enough that it may attract attention from legendary value investor Warren Buffett.
Netflix has a durable competitive advantage in brand loyalty and original content, and it remains the top streaming service by most metrics.
Netflix trades at 23 times earnings, the cheapest valuation in three years, and most Wall Street analysts believe the stock is undervalued.
Warren Buffett stepped down as Berkshire Hathway's CEO last December, but he is still involved in investment decisions for the company. For instance, Berkshire bought stock in Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) last year and has continued to buy shares this year, and Buffett, not current CEO Greg Abel, initiated the investment.
Which company will draw Buffett's attention next? One Wall Street expert says the answer might be Netflix (NASDAQ: NFLX), a megacap stock worth $305 billion. With shares down 41% from the high, the valuation is cheap enough that it may be on Buffett's radar, according to Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management.
Missed Nvidia in 2009? 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 »
Here's what investors should know.
How Alphabet fits Warren Buffett's investment framework
Warren Buffett's decision to buy Alphabet was somewhat surprising because, apart from buying Apple (NASDAQ: AAPL), Berkshire has largely avoided technology stocks during the past decade. That's not because there's some problem with that market sector, but rather because technology companies fall outside Buffett's circle of competence.
Buffett clearly explained his reservations in his 1999 shareholder letter. "Our problem -- which we can't solve by studying up -- is that we have no insights into which participants in the tech field have a truly durable competitive advantage." Nevertheless, Buffett stepped outside his comfort zone when he purchased Apple stock in 2016 and he did so again with Alphabet stock in 2025.
What gave him the confidence to invest in those companies? Buffett says, while he may not understand the underlying technologies, he does understand consumer behavior. Apple and Alphabet inspire tremendous consumer loyalty, the former with smartphones and the latter with platforms like Google Search, YouTube, and Google Cloud.
Buffett once joked that consumers would sooner give up a second car than their iPhone. Similarly, many brands see Alphabet's advertising tools and cloud services (especially those related to artificial intelligence) as indispensable. Even to someone like Buffett who is uncomfortable with technology stocks, such brand loyalty is an unmistakable sign of a competitive moat. And Buffett has historically focused on stocks that meet two criteria: They must (1) have a sustainable moat and (2) trade at a reasonable price.
How Netflix fits Warren Buffett's investment framework
Buffett in 1996 wrote, "Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10, and 20 years from now." Netflix checks those boxes.
Like Apple and Alphabet, Netflix has a durable competitive advantage built on brand loyalty that should keep it at the forefront of its industry for years to come. While competition is far more intense today than it was five years ago, Netflix remains the dominant streaming service by almost every metric of consequence.
Specifically, Netflix has more monthly active users, generates more revenue, maintains a better retention rate, and accounts for a larger percentage of viewing time than any other subscription streaming service. The secret behind its dominant market position is quality original content. Netflix originals consistently outperform shows made by other streamers in terms of engagement.
So what? The streaming industry still has room to grow. I say that because all streaming services combined account for less than 50% of TV viewing time today, according to market research company Nielsen. Also, connected TV advertising accounts for less than 50% of total TV ad spending. So, Netflix has a durable competitive advantage in a growing industry, which suggests earnings will be materially higher in the future.
Most Wall Street analysts think Netflix stock is deeply undervalued
Netflix reported solid financial results in the second quarter. Revenue increased 13% to $12.5 billion, driven by particularly strong sales growth in international markets, and net income climbed 11% to $0.80 per diluted share. Management also provided solid guidance, saying revenue would increase between 13% and 14% for the full year.
Looking ahead, Wall Street estimates Netflix's earnings will increase at 20% annually over the next three years. That makes the current valuation of 23 times earnings look cheap. In fact, Netflix hasn't traded at such a low valuation in more than three years. And most Wall Street analysts think the stock is deeply undervalued. Netflix has a median target price of $93 per share, which implies 25% upside from its current share price of $74.
Here's the big picture: Netflix stock is down 41% from its high, partly because investors are concerned about the company's growth prospects after it failed to win the bidding war for Warner Bros. Discovery and Roku. But I think the stock is oversold at its current price, and I wouldn't be surprised to see Berkshire Hathaway buy a position in the near future.
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Trevor Jennewine has positions in Roku. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warren Buffett Bought Alphabet Stock Last Year. He Might Buy This Megacap Stock Next, Says a Wall Street Expert.

Warner Bros. Discovery (WBD) reported $8.72 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 11.2%. EPS of $0.06 for the same period compares to $0.63 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.29 billion, representing a surprise of -6.19%. The company delivered an EPS surprise of +146.15%, with the consensus EPS estimate being -$0.13.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Warner Bros. Discovery performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Global Linear Networks: $3.99 billion compared to the $4.19 billion average estimate based on five analysts. The reported number represents a change of -16.9% year over year.
Revenues- Studios: $2.33 billion compared to the $3.04 billion average estimate based on five analysts. The reported number represents a change of -38.8% year over year.
Revenues- Streaming: $3.08 billion versus $3.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.
Revenues- Inter-segment eliminations: $-682 million compared to the $-974.93 million average estimate based on four analysts. The reported number represents a change of -57% year over year.
Revenues- Content: $1.83 billion versus $2.38 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -26% change.
Revenues- Distribution: $4.95 billion compared to the $5.01 billion average estimate based on three analysts. The reported number represents a change of +1.3% year over year.
Revenues- Other: $215 million versus $301.79 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -10.4% change.
Revenues- Advertising: $1.72 billion compared to the $1.9 billion average estimate based on three analysts. The reported number represents a change of -22.2% year over year.
Revenues- Distribution- Global Linear Networks: $2.27 billion versus $2.29 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -8.6% change.
Revenues- Content- Global Linear Networks: $261 million compared to the $236.48 million average estimate based on two analysts. The reported number represents a change of -9.1% year over year.
Revenues- Other- Global Linear Networks: $36 million versus the two-analyst average estimate of $84.29 million. The reported number represents a year-over-year change of -58.1%.
Revenues- Advertising- Streaming: $306 million versus the two-analyst average estimate of $308.52 million. The reported number represents a year-over-year change of +8.5%.
Shares of Warner Bros. Discovery have returned -0.7% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warner Bros. Discovery (WBD) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

(RTTNews) - Paramount Skydance Corp. (PSKY) on Thursday won UK competition approval for its acquisition of Warner Bros. Discovery, Inc. (WBD), clearing a key hurdle for the proposed media merger.
The UK Competition and Markets Authority formally cleared the deal. With the CMA's decision, authorities in 66 jurisdictions have now either approved the transaction or declined to challenge it on competition and foreign investment grounds.
Also, Paramount has entered into a deed of covenant with the UK Department for Digital, Culture, Media and Sport. Paramount Skydance said the combination would create a scaled media and entertainment company.
Notably, these clearances recognize that the combination of Paramount and WBD will enhance consumer choice and enable a creative-first company to invest in more projects and bring stories to audiences worldwide.
In pre market activity on the Nasdaq, shares of Paramount Skydance were down 0.57 percent, changing hands at $8.71, after closing Wednesday's regular session 4.53 percent higher.
Warner Bros shares rose 0.85 percent to $26.19 in pre-market trading on the Nasdaq, after ending Wednesday's regular session 0.70 percent higher.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.