Shares of streaming giant Netflix Inc. NASDAQ: NFLX head into their next earnings report in a pretty uncomfortable position. Since hitting all-time highs last summer, the stock has fallen roughly 30% in a sustained downtrend, effectively erasing all its 2025 gains.
Netflix is rated a buy, driven by robust execution, network effects, and margin expansion, assuming no Warner acquisition. NFLX's ad-supported tier and live events are key growth drivers, enhancing user retention, data generation, and monetization opportunities. Content spend growth remains below revenue and EBIT growth, supporting scalable margins and a strong free cash flow outlook.
Netflix (NFLX) concluded the recent trading session at $89.44, signifying a -1.21% move from its prior day's close.
Shares of Netflix have tumbled since October, when the streaming giant became one of the presumed suitors for Warner Bros. Discovery.
If there was one clear message coming out of CES 2026, it was this: advertisers no longer want promises. They want performance, measurement and accountability.
Netflix stock showcased robust financial performance throughout 2025, experiencing considerable revenue growth and margins, even amidst signs of subscriber maturation. However, the shares encountered volatility, concluding the year approximately unchanged or with a slight increase.
The board of Warner Bros Discovery (WBD) has urged its shareholders to reject an amended hostile bid by Paramount Skydance while maintaining its unanimous support for a rival offer by Netflix.
Netflix (NFLX) has faced challenges in the past. Its stock has dropped over 30% within less than two months on as many as six different occasions recently, erasing billions in market capitalization and negating substantial gains in a single correction.
Even Larry Ellison's vast personal fortune isn't enough to convince Warner Bros. Discovery to change its mind on its deal with Netflix.
Netflix (NFLX) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Netflix's recent sell-off is largely driven by negative sentiment following its Q3 earnings miss and concerns surrounding the Warner deal. The market cap decline following the Warner announcement has wiped out more than the $83 billion acquisition value, indicating that these concerns are largely priced in. The upcoming 4Q FY2025 earnings are expected to be strong, driven by Stranger Things 5 and other holiday releases, which appear to be largely discounted by the market.
Netflix's proposed Warner Bros. deal has spooked investors.