Netflix and Paramount Skydance Are Both Down Over 20%. Here's the 1 to Buy With $500 and Never Look at Again.

Content may still be king, but the two players in the recent real-life game of thrones aren't doing so well. Netflix (NASDAQ: NFLX) initially succeeded in striking a buyout deal for Warner Bros. Discovery (NASDAQ: WBD) late last year, only to see Paramount Skydance (NASDAQ: PSKY) wrestle it away earlier this year. Netflix is down 24% in 2026. Paramount Skydance has fallen 26%. The winner and the loser of the Warner Bros. Discovery bidding battle both lost the war? Let's size up the opportunity behind both sell-offs before deciding which one is worthy of the next $500 you have to put to work in the stock market. Missed AI's "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1" -- the R&D phase. "Act 2" is the global rollout. Continue " Image source: Getty Images. Binge investing The case for Netflix is pretty compelling. It didn't have HBO and DC Comics parent Warner Bros. in its arsenal a year ago. It doesn't have it today, but it was on the receiving end of a $2.8 billion termination fee when Warner Bros. Discovery chose to break things off to go with the higher Paramount Skydance offer. Netflix stock is still trading lower in 2026, and down a brutal 47% from the all-time high it notched 15 months ago. It remains the top dog in its field, with more than 300 million premium subscribers worldwide. Business has slowed this year. Netflix began this year by posting strong fourth-quarter results in January, its strongest top-line growth in four years. It's been all downhill ever since. * Q4 2025: 18% revenue growth * Q1 2026: 16% * Q2 2026: 13% * Q3 2026: 12% (Netflix guidance) The upside is that Netflix remains highly profitable. Mounting a bullish case for Paramount Skydance Media was once a small company founded by David Ellison, the son of one of the richest people on the planet. Two summers ago, it struck a deal to acquire Paramount, which took 13 months to close. In February of this year, it succeeded in breaking up the deal between Netflix and Warner Bros. Discovery. It struck a $110 billion deal for Warner Bros. Discovery, which is still working its way through the thorny approval process. Paramount Skydance should benefit from the scalability of its acquired empire once the deal is complete. Paramount was a great catch. Warner Bros. Discovery is an even bigger fish to fry (and monetize). With streaming services aggressively jacking up their prices in recent years, margins should continue to widen for remaining players. Paramount Skydance has cleared most of the hurdles to close on its deal for Warner Bros. Discovery. It's a media empire worth watching, and I believe both companies can beat the market after their year-to-date declines. I'm still going with Netflix as the best place to put your next $500. Netflix is trading at a forward earnings multiple just shy of 20, a historical bargain for the company. Consolidation among streaming services will benefit all players. There will be more pricing elasticity and bottom-line growth. As the pioneer in this space, you don't want to bet against Netflix for long if you're short. Should you buy stock in Netflix right now? Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,382,954!* Now, it's worth noting Stock Advisor's total average return is 937% -- a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of September 28, 2026. Rick Munarriz has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Netflix and Paramount Skydance Are Both Down Over 20%. Here's the 1 to Buy With $500 and Never Look at Again.

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