Netflix (NFLX) reaffirmed its stance of not pursuing media mergers or acquisitions in the coming year, even as its competitors explore consolidation, according to a Yahoo Finance report. The streaming giant’s Co-CEO Ted Sarandos, speaking at the UBS media conference in New York City on Tuesday, stated, “We’re better builders than buyers,” implying that the company intends to grow organically rather than expanding through big-ticket acquisitions.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
NFLX Is a Better “Builder” than a “Buyer”
Elaborating further, Sarandos explained that Netflix has historically been more successful as a “builder” rather than a “buyer.” While the company has made smaller intellectual property (IP) acquisitions, such as the purchase of the Roald Dahl Story Company, Sarandos pointed out that Netflix’s strength lies in creating original content. He added that this approach has helped the streamer maintain its competitive edge, as indicated by the “Netflix effect”—the massive success of its original programming that results in catapulting an unknown actor to overnight fame.
NFLX’s Original Content Is Doing Remarkably Well
Furthermore, Sarandos highlighted the “off-the-charts” performance of the recent Jake Paul-Mike Tyson fight, which attracted a staggering 108 million global viewers. The event’s popularity led to technical glitches and stretched “the limits of the internet itself,” demonstrating the immense demand and reach of Netflix’s content.
Additionally, Sarandos stated that, despite the growing trend of consolidation in the media industry, it would not significantly alter Netflix’s competitive landscape.
What Is the Target Price for NFLX?
Analysts remain cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and two Sells. Over the past year, NFLX has surged by more than 90%, and the average NFLX price target of $830.14 implies a downside potential of 9.1% from current levels.
