MBA FPX 5008 Assessment 3 Applying Analytic Techniques to Business

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Hi everyone. My name is ____. The current presentation brings a financial and competitive analysis of Netflix, Inc. based on data to offer a strategic investment recommendation.

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• Business Context and Introduction

The financial outcomes of Netflix still support its stance as the industry leader, reporting record revenues of $12.05 billion and $45.18 billion of Q4 2025 and fiscal year 2025 revenues, respectively (Wilson, 2026). To support long-term competitive growth, this company has invested in original content, proprietary technology, and ad-supported levels of subscription. This dedication was increased in January 2026 when Netflix purchased InterPositive, a tool of AI-composed production invented by Academy Award-winning actor Ben Affleck (Murray, 2026). These are strategic actions that place Netflix at a clear edge over its nearest rivals, and as such, Netflix enjoys a big market share than its rivals, Warner Bros. Discovery and Paramount Global, which are much smaller.

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• Graphics and Analysis

Netflix has a commanding 44.21% share of the international subscription video-on-demand market, which significantly surpasses those of two major rivals, which are, Warner Bros. Discovery and Paramount Global, at 10.31% and 7, respectively (Wilson, 2026). The market share of an organization is the initial indicator of the level of general competitiveness in an industry. It emphasizes the increased readiness of the organisation to attract and retain customers compared to any of its competitors (Koshksaray et al., 2023). Though Netflix does not earn as much total revenue as Warner Bros. Discovery, due to the fact that it is a separate streaming service, Netflix can enjoy lower overhead costs, and the net profit margin will always show positive values. Competitive benchmarking of different financial indicators, including total assets, total revenue, and general profitability, would yield the most insightful picture of what sorts of structural advantages each company will hold over its competitors within the specified market (Wu et al., 2025). As of now, both Paramount Global and the recently merged Warner Bros. Discovery are reporting continued net losses in attempting to turn their traditional broadcasting and cable properties into successful streaming-first enterprises (Wilson, 2026).

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• Competitor and Industry Graph and Information

A comparison between the stock prices of Netflix from January 1, 2015 to December 31, 2025 (2,536 days ) in the U.S. reveals significantly lower stock price growth in that time frame than either Warner Bros. Discovery or Paramount Skydance. Moreover, Netflix peaked at a price of about 4.87 a share on July 1, 2015; Warner peaked at a price of about 99.90 a share during the pandemic boom of 2020-2021. A long-run comparison of stock prices allows a closer look at a much different investor sentiment, business model, and future growth prognosis in a similar business in the same industry (Li et al., 2023). By contrast, both Warner and Paramount had fallen during the 2,536 days in their stock prices because of their persistent losses in investor confidence in their legacy mixed-media business models, which have not been as profitable in finding success in the streaming-primarily marketplace. The technical stock price comparisons also give analysts and financial planners a good visual representation for comparing the relative competitive performance of firms in the same industry over a given period (Bharath et al., 2025). Due to the combination of factors mentioned, the widening performance gap between Netflix and its competitors was the largest in history between 2020 and 2025 because its competitors did not have access to the level of accelerated growth of Netflix subscribers it experienced during the global pandemic, which revealed the inadequacy of their respective strategies in a transition.

• Graph 1

Stock Price Comparison – Netflix (NFLX) vs. WBD vs. PSKY (2015–2025)

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• Two Descriptive Statistics

Since January 01, 2015, when it hit an all-time low stock price of about 5.03, Netflix has seen a success rate by growing exponentially up to a record stock price close of about 99.90 towards the end of 2021, in the course of sustained subscriber growth and aggressive efforts to create original content around the globe (Wilson, 2026). Moving averages are also often used in equities research to eliminate short-term swings of the stock price, culminating in the identification of the trend of the long-term direction of an equity over a given period (Mostafavi and Hooman, 2025). The 60-day moving average of Netflix has steadily risen over 2021, with a minor decrease only in early 2022 when Netflix confirmed it would lose subscribers for almost a decade, with a large selling spurt by institutional investors. A widely identified statistical computation in the financial industry is the linear trend line, which is used to forecast the average rate of increase in prices of an underlying asset over time and also assess the long-term trends in the equity value generated (Leonardo et al., 2022). The linear trend line shows that Netflix will likely be valued at approximately 5.43 a year, supporting the argument that, despite heightened volatility, Netflix has been creating large amounts of measurable shareholder value over the past decade (Wilson, 2026).

• Graphic 2

Netflix Highest Daily Stock Price with 60-Day Moving Average (2015–2025)

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The lowest price Netflix had seen throughout the day was in the period January 2015, at 4.53, and the highest price was in April 2022, when they had the first subscriber loss and due to the macroeconomic strains of a rise in interest rates (Wilson 2026). A high price (intraday) is frequently a strong cautionary measure of riskiness to equities since it indicates the amount of selling clamp upon an equity that all market participants have executed at any stage (Rahim et al., 2024). Looking at a 60-day low chart, we can state that Netflix was under constant pressure to the downside throughout the first half of 2022, which validates that this correction was a long-run change of investor perceptions towards their shares, rather than a market event. Trend lines of price floors can be used to analyze whether the long-run support levels were gaining or losing momentum and provide the analyst with valuable information that is actionable on the investment risk inherent in a given equity (Chang et al., 2024). The Netflix stock price low trend lines (following the correction in 2022) show that the linear trend line in the last 10 years has a positive slope and the price floor of the stock is steadily increasing; hence, the long-term downside risk of this equity is going to be less as time passes.

• Graphic 3

Netflix Lowest Daily Stock Price with 60-Day Moving Average (2015–2025)

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• Summary of Other Analysts’ Comments

Analysts have a very optimistic outlook on Netflix, and the overall stock rating on the company is a strong buy rating with a 12-month consensus price target of 118.66, a 24% increment to the current trading price in early 2026, indicating that most institutional investors have a lot of confidence in the long-term growth potential within the company (Stock Analysis, 2026). Equity research analyst consensus ratings are synthesised by aggregating various financial models, industry and qualitative standards and then generate prospective investment advice that assists institutions and individuals in making investment decisions (Stock Analysis, 2026). The year-end revenues of Netflix were 2025 US dollars, and its net earnings were 10.98 US dollars, showing significant improvement over the past year and affirming the bullish story proposed by the analysts that double-digit growth in revenues annually. Price targets of analysts are already deemed to be the most dependable when they are founded on the pattern of observable income, the existing momentum of earnings, and expansion of the competitive edge of an organization in its market (Rosa, 2025). Furthermore, Netflix has continued to build up the momentum of its strong buy rating in January 2026 when it announced an acquisition of InterPositive, a company started by Ben Affleck that offers artificial intelligence-based tools to produce movies, which indicates that Netflix takes a long-term strategic approach (Murray, 2026; Reuters, 2026).

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• Conclusion and Recommendation

The competitive space comparison graph and industry graph demonstrate that neither Warner Bros. Discovery nor Paramount Global is financially strong enough to compete with Netflix leadership in the near future. Netflix has steadily shown long-term price growth as shown in Graphic #1 which has allowed them to conclude that investors are considerably trusting in the content and technology approach of Netflix. All in all, there are several substantial reasons why a suggested commitment towards a strategic alliance or investment-type affair with Netflix is endorsed.

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The daily stock price chart with its 60-day moving average indicates that the lowest price of Netflix has been fluctuating upward in the past decade, too, which implies that there is less possibility of the price falling in the future. The linear trend lines on both of the two stock price charts also show that Netflix’s trajectory will continue to be a positive trend into the future, even with short-term fluctuations in pricing. Analyst Consensus reiterates this same sentiment by stating that there is a 12-month price target of $118.66, a 24% higher increase than what is currently being traded. On January 31 st, 2026, Netflix acquired InterPositive to continue to lean more towards AI technology and gradually achieve its long-term strategic objective to collaborate with them in an interesting manner.

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• Discussion

I would like to thank everyone who was listening and participating in this presentation on the capability of Netflix to compete and to perform financially. The presented material (such as the competitor matrix, industry graphics, descriptive statistics, and analyst comments) can become the basis of the conversations related to the strategy in the future. We’d love to have your input, ideas, and views about Netflix regarding its investment viability, place in the marketplace, and ability to grow long-term. Your ideas will augment the discussion on the streaming industry in general.