President Donald Trump has recently made clear that he opposes Netflix's (NFLX) planned takeover of Warner Bros. Discovery (WBD), and his administration could potentially block the deal for a while, although the courts could eventually overrule the administration's decision. In the short-to-medium term, NFLX stock would likely climb if the takeover is prevented.
But history has shown that Trump's presidential power does not necessarily affect firms' fate. What's more, the market is currently enthralled primarily with data center power generation for AI and healthcare. Since Netflix is not remotely involved in either of these areas (although the company is “all in” on GenAI), NFLX stock is likely to at best perform slightly better than the market in the short-to-medium term. Therefore, I believe that investors with a time horizon of a year or less should sell NFLX stock.
