Feb. 13 at 11:14 PM
$NFLX In case you're living under a rock, the prolonged weakness doesn't have so much to do with the WB acquisition that would increase debt. Nor does it stem from tepid 2026 guidance. It has more to do with the release of advanced video generating tools from xAI, OpenAI (Sora) and oncoming from other AI platforms. If AI can produce high-quality, professional-looking content instantly and cheaply, the high production budgets of NFLX, DIS, FOX & PSKY will be threatened. The same way YouTube disrupted network TV. It's the democratization of production tools and attainment of production value that Youtubers could dream about only 12 months ago. AI-generated niche content instantly gains primacy over NFLX originals. Amzn is here because of Prime though only a small portion (7%): there is a different dynamic at work for its recent decline obviously. WBD not in due to the built-in acquisition premium. But the weakness is industry-wide, not NFLX-specific.