NFLX Arbitrage: 20x Forward P/E, $25B Buyback Highlight Value Disconnect Despite M&A Setbacks and 52-Week Lows

Netflix (NFLX) plunged 5.82% to close at $72.88 as failed M&A pursuits for Roku and Warner Bros. Discovery triggered fears of strategic stagnation amidst intensifying ecosystem competition. Despite near-term technical damage and a board shakeup following Reed Hastings' departure, a projected 42.29% surge in 2026 EPS and an expanding ad-tier present a compelling valuation disconnect for long-term investors.