<div id="readability-page-1">Netflix (NASDAQ:NFLX) has been in the news quite a bit of late, with stock splits and mergers the talk of the town. Not to get lost in the shuffle, the company's share price has fallen some 20% over the past half year.<h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential</li></ul> While the company's revenues have been growing, an EPS miss during Q3 didn't exactly help sentiment (though the management explained that this was due to a one-time tax dispute in Brazil). Still, Netflix has delivered plenty of good news for investors of late. Its latest quarterly revenues grew 17.2% year-over-year and free cash flow increased by over 20% to hit $2.7 billion at the end of Q3. The drooping share price also makes NFLX a cheaper buy. Could it also serve as a good opportunity to gobble up shares of the streaming giant? Top investor Daniel Sparks acknowledges that it might be, but he has some caveats. &#34;Netflix look(s) attractive again, but not quite safe enough for anything more than a small position,&#34; posits the 5-star investor, who is among the top 1% of stock pros covered by TipRanks. Sparks believes the potential merger is not without its risks, as the &#34;massive&#34; Warner Bros. Discovery deal is not a foregone conclusion. He cites the rival bid from Paramount Skydance, as well as regulatory uncertainty that is clouding the picture. Another concern for the investor is that this could become a drawn-out affair, one that becomes a distraction for management. While it is certainly cheaper, Sparks is still not thrilled with NFLX's current valuation. He argues that a Price-to-Earnings ratio of around 40x means that investors are shelling out for &#34;double-digit revenue growth and rapid earnings growth.&#34; In other words, it is okay to look and even touch, but one should proceed with caution, sums up Sparks. &#34;The core business still faces fierce competition for viewer time, and a mega-deal introduces integration risk and regulatory uncertainty that could add complexity to the business, distract management, and ultimately weigh on the stock,&#34; adds Sparks. (To watch Daniel Sparks' track record, click here) While it's not unanimous, overall Wall Street is feeling upbeat about NFLX. With 27 Buys, 9 Holds, and 2 Sells, NFLX enjoys a Moderate Buy consensus rating. Its 12-month average price target of $133.82 implies gains north of 40% in the year ahead. (See NFLX stock forecast) </div>

NFLX

Top investor Daniel Sparks sees Netflix stock as attractive but advises caution due to risks from potential mergers and high valuation. Despite a 20% share price drop, Netflix's revenues and free cash flow have grown. Wall Street remains optimistic with a Moderate Buy consensus and a 12-month price target suggesting over 40% gains.

- Netflix's share price has decreased by 20% over the past six months, despite a 17.2% year-over-year revenue growth and a significant increase in free cash flow.  
- Investor Daniel Sparks views Netflix as potentially attractive but advises caution due to risks associated with a possible merger and high valuation metrics.  
- Overall, Wall Street maintains a Moderate Buy consensus on Netflix, with a 12-month average price target suggesting over 40% potential gains.

'Attractive Once More,' Says Top Investor About Netflix Stock