Netflix Lost the Battle for Warner Bros, but Goldman Sachs Says It Won the War

Goldman Sachs turned bullish on Netflix after the streamer walked away from a bid for Warner Bros Discovery, arguing the decision strengthens Netflix’s digital-first strategy. The stock has started to recover—up 8.92% over three months and 6.29% in five days—after a 52-week gain of 13.87% but remains ~26% below its prior high. Netflix reported a Q4 beat (revenue $12.05B, EPS $0.56) with strong ad growth and improved free cash flow, and management guided fiscal 2026 revenue of $50.7–$51.7B. Goldman’s analyst rates NFLX a Buy with a $120 target (≈21.3% upside), while Street consensus skews “Strong Buy” with a mean target of $114.86. The article frames Netflix’s outlook as bullish: continued ad monetization, margin expansion, and potential shareholder returns underpin a constructive risk-reward for investors.