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Story summary
- Netflix, Inc. rose after deciding not to acquire Warner Bros., avoiding $82.7 billion in debt.
- Netflix plans to invest about $20 billion in content this year and will likely avoid similar large acquisitions.
- Netflix stock trades at about 38 times trailing earnings, above the S&P 500 average of 25 times.
- Despite the premium, long-term investors may see Netflix as worthwhile due to its leadership in streaming and growth.
