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11h ago

Netflix Stock Slumps as All-Cash Warner Bid and Slower 2026 Outlook Weigh on Sentiment

Investor caution reflects unresolved details on the all-cash Warner Bros. bid, financing, regulatory review, margin guidance.

Netflix trading may be range bound until the next catalyst for the stock, an analyst said.
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Overview

  • Netflix topped Q4 expectations with $12.05 billion in revenue, roughly 18% year over year, and reached about 325 million paid subscribers.
  • Management guided 2026 revenue growth to 12%–14% and an operating margin near 31.5%, trailing some prior investor assumptions.
  • The company projects advertising sales to roughly double to about $3 billion this year as its ad tier scales.
  • Netflix revised its Warner Bros. Discovery proposal to an all-cash $27.75-per-share offer in a contest with a Paramount Skydance approach, halted share buybacks, and outside experts say financing would likely involve taking on debt.
  • Shares are down about one-third from mid-2025 highs and recently neared 52-week lows, even as Bernstein reaffirmed a Buy rating and Freedom Capital Markets and Phillip Securities issued upgrades.