Netflix management recently argued in front of a Senate committee that its proposed deal would strengthen Hollywood.
- Netflix stock is down about 40% from its peak in June.
- As the WBD deal drags, shares of both Netflix and Paramount Skydance have been under pressure.
- Stocktwits sentiment for NFLX drops to ‘bearish.’
Netflix, Inc. shares hit a fresh 52-week intraday low on Wednesday as its deal to acquire Warner Bros Discovery drags on. Separately, President Donald Trump has said he’s not involved in the deal, which is also being pursued by Paramount Skydance.
Netflix shares fell as low as $79.22 during the regular session on Wednesday, but later rebounded to end 0.3% higher at $80.16.
In December, Netflix announced a $72 billion deal to acquire Warner Bros. Discovery’s film studio, along with HBO and the HBO Max streaming service. Its shares have been under pressure since its interest first emerged via unverified reports in late September.
As of date, Netflix shares are down about 40% from their peak of $133.91 on June 30. On Stocktwits, the retail sentiment for NFLX has consistently declined over the past week, and was ‘bearish’ as of early Friday. Paramount shares are down about 45 from their peak on Sept. 23.
The newly formed Paramount Skydance has filed multiple competing bids for the entire Warner Bros. enterprise, but Warner Bros. has rejected them. The U.S. Department of Justice is currently reviewing the transaction, along with a competing, hostile bid from Paramount Skydance.
Earlier this week, Netflix management argued before a Senate committee that its proposed deal with WBD would strengthen Hollywood by expanding domestic production, preserving jobs, and investing in assets that Netflix lacks.
Trump Denies WBD Deal Talks
Meanwhile, Trump has denied any involvement in the deal talks, he told CNBC in an exclusive interview – a shift from what he said late last year. “I’ve been called by both sides. It’s the two sides, but I’ve decided I shouldn’t be involved. The Justice Department will handle it,” he told the news channel.
“There’s a theory that one of the companies is too big and it shouldn’t be allowed to do it, and the other company is saying something else,” he said. “They’re beating the hell out of each other — and there’ll be a winner.”
Analysts’ View, Recent Earnings
Late last month, Phillip Capital upgraded its NFLX rating to ‘Accumulate’ from ‘Sell,’ and Freedom Capital upgraded its view to ‘Buy’ from ‘Hold’ owing to upbeat earnings and the recent selloff in shares, according to The Fly.
Currently, 30 of the 44 analysts covering the stock recommend ‘Buy’ or higher, 13 recommend ‘Hold,’ and one rates it ‘Sell,’ according to Koyfin. Their average price target of $111.84 implies a 40% upside from the stock’s last close.
Last month, Netflix reported its Q4 earnings and published current-quarter and 2026 forecasts, all of which topped expectations. The company said it would pause its stock buyback and increase content spending by 10% this year.
NFLX stock is down over 14% year to date.
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