New York, January 5, 2026, 18:05 (EST) — After-hours
- CFRA cut Netflix to Hold from Buy and lowered its 12-month price target to $100.
- Netflix shares finished up about 0.5% at $91.46 and were little changed after hours.
- Investors are looking to Netflix’s Jan. 20 results for deal financing and 2026 outlook signals.
Netflix, Inc. shares were little changed in after-hours trading on Monday after CFRA downgraded the stock, putting the spotlight back on risks tied to the company’s pursuit of Warner Bros. Discovery. 1
The timing matters because the market is still trying to price a potential step-change in Netflix’s balance sheet and strategy. A drawn-out review or costlier financing can hang over a stock even if the core business holds up.
That focus sharpens with Netflix due to report fourth-quarter results on Jan. 20, when investors expect fresh detail on the business outlook and any read-through on major corporate moves, the company said. 2
Netflix shares ended the regular session up about 0.5% at $91.46.
CFRA analyst Kenneth Leon said the “overhang” of closing the Warner transaction — trader shorthand for lingering uncertainty that can weigh on a stock — may take 18–24 months, and he adopted a more conservative valuation approach. He cited a 25.4-times enterprise-value-to-EBITDA multiple, a common yardstick that compares a company’s value including debt with its operating cash profit. “We think both U.S. and EU regulators may require that NFLX spin-off the HBO Max streaming business held by WBD,” Leon said. 3
The Warner situation remains contested, with Paramount Skydance pursuing its own bid for Warner Bros. Discovery even as Netflix is viewed as a preferred acquirer, Reuters has reported. 4
For Netflix shareholders, the near-term debate is less about a single quarter and more about execution. Investors want clarity on how management would fund a large transaction and what it would mean for cash generation in 2026.
The risk case is straightforward: tougher antitrust conditions, a prolonged regulatory timetable, or a higher price could push up borrowing costs and dilute the deal’s appeal. A choppier tape in growth stocks would amplify that pressure.
In trading terms, the stock has hovered around the $90 area in recent sessions after a sharp drop on Friday, leaving investors watching whether the bounce can hold. 5
The next hard catalyst is Netflix’s Jan. 20 earnings report, when the market will press for specifics on guidance, financing and any updated path for the Warner deal.
