Despite surpassing recent earnings estimates and recording impressive results, Netflix Inc’s (NASDAQ:NFLX) stock has plummeted to a 52-week low. This comes amidst the streaming giant’s potential victory in the $100 billion bidding war for the Warner Bros. Discovery studio.

The market’s negative response to Netflix’s stock performance is attributed to a clash between the company’s long-term strategy and immediate financial realities. Despite Netflix’s profitability and aggressive expansion of its content library and advertising infrastructure, investors are focused on the dwindling margins and the uncertain costs of the potential Warner Bros. acquisition.

Recently Melissa Otto, head of visible Alpha Research at S&P Global told Fortune, that Netflix’s stock could be “dead money until we get a meaningful catalyst.”

She posits that the market is repricing the streaming giant, which has seen its trading drop ...