New York, January 26, 2026, 10:29 AM ET — Regular session
- Netflix shares slipped roughly 0.4% to $85.77 in early trading, after kicking off the day at $86.88
- Phillip Securities Research upgrades its rating to “Accumulate” from “Sell” and boosts the target price to $100
- Investors remain focused on the Warner Bros. vote timeline, with a competing Paramount bid expected by Feb. 20
Netflix (NFLX.O) shares slipped roughly 0.4% to $85.77 in early Monday trading, starting the day at $86.88.
The decline happened despite Phillip Securities Research upgrading Netflix from “Sell” to “Accumulate” and boosting its target price to $100. “Accumulate” signals a cautious buy, and the target price reflects where analysts expect the stock to trade over the coming year. (Stocksbnb)
This call is significant since Netflix has turned into a deal stock. For weeks, traders have wrestled with how to value the balance-sheet pressure and the political and regulatory uncertainty linked to its bid for Warner Bros Discovery’s studios and streaming assets.
Paramount Skydance has pushed its hostile tender offer for Warner Bros shares until Feb. 20, Reuters reports. The move seeks to buy shares directly from shareholders at a set price. Reuters also notes a shareholder vote on the Netflix deal is slated for April. (Reuters)
On Jan. 20, Netflix and Warner announced a shift in their deal to an all-cash offer, pegged at $27.75 per Warner share. Warner shareholders will also receive shares in the upcoming “Discovery Global” spin-off. Netflix co-CEO Ted Sarandos said the update “enables an expedited timeline to a stockholder vote and provides greater financial certainty.” The companies are currently in talks with regulators, including the U.S. Justice Department and the European Commission. (Netflix)
Media stocks showed varied moves. Warner Bros Discovery (WBD.O) slipped roughly 0.6%. Paramount Skydance (PSKY.O) dropped close to 0.7%, but Walt Disney (DIS.N) edged up around 0.6%.
Netflix executives have dismissed the competing bid. Co-CEO Greg Peters told Reuters, citing the Financial Times, that Paramount’s offer “doesn’t pass the sniff test.” (Reuters)
Netflix has signaled to investors that future growth will rely more on price hikes and advertising than just adding new subscribers. In its shareholder letter dated Jan. 20, the company projected 2026 revenue between $50.7 billion and $51.7 billion. It also expects advertising revenue to nearly double in 2026 compared to 2025. (Netflix)
Phillip Securities reported that Netflix’s fourth-quarter revenue and profit met expectations, highlighting a strong surge in advertising revenue paired with growth in membership and price hikes. The note cautioned, however, that the Warner deal might sustain elevated volatility despite ongoing business progress.
The story could shift quickly. A drawn-out regulatory review, stricter remedies, or postponement of the Warner vote might push the stock’s deal discount wider. Meanwhile, rising content costs and financing expenses threaten to tighten margins if revenue growth falters.
Washington remains a near-term focus. According to Bloomberg News, Sarandos is set to testify in February before a U.S. Senate committee reviewing the Warner deal. Reuters confirmed that Warner’s chief revenue and strategy officer, Bruce Campbell, is also slated to appear. (Reuters)
Traders are focused on Feb. 20, the deadline for Paramount’s tender offer, watching closely for any fresh SEC filings or public pledges before the April shareholder vote.
