Netflix Eyes Letterboxd Buy as Stock Holds at $77.73 Ahead of Earnings

Netflix is shifting toward smaller strategic acquisitions like Letterboxd after abandoning larger deals, while its stock has rebounded to $77.73 from a $70.86 low. The move follows June's elevation of AI as a core priority for recommendations and ads, plus July expansion of the advertising platform targeting $3 billion in 2026 revenue. With 250 million ad-tier viewers and Q2 earnings due July 16, investors focus on ad momentum and potential margin gains amid 13.3% revenue growth guidance.