NEW YORK, June 24, 2026, 15:08 (EDT)
- Netflix shares slipped around 0.5% in the afternoon, trading close to $72.45.
- The stock has stayed under pressure lately with deal talk swirling after Netflix dropped out of the chase for Warner Bros Discovery.
- Netflix is adding more ads and games, with an Omnicom ad deal and a new horror game out June 30.
Netflix shares were down about 0.5% at $72.45 in afternoon trading Wednesday in New York. The stock remains near its 52-week low. Over the last year, shares have dropped around 43%, according to MarketWatch.
Growth and deals are under the microscope. M&A—mergers and acquisitions—refers to buying or joining with other firms. Investors got skittish about Netflix possibly eyeing a big buy after failed talks with Warner Bros Discovery, MarketWatch said Wednesday.
Netflix “looked ‘desperate to do something big,’” SSR’s Tim Nollen told MarketWatch. “I struggle to find meaningful near-term catalysts,” Citizens analyst Matthew Condon wrote. A Netflix spokesperson told MarketWatch, “We’re more builders than buyers.” MarketWatch
Warner Bros Discovery is still in the mix. Netflix pulled out of the running in February, leaving Paramount Skydance to say it would acquire Warner Bros for $110 billion and cover the $2.80 billion termination fee owed to Netflix. Netflix said it didn’t want to match Paramount’s price, calling the deal less attractive. Ben Barringer at Quilter Cheviot called Netflix’s move a “tick in the box” for sticking to discipline. Reuters
Competition is a factor here. Barron’s said Tuesday that Netflix’s share of U.S. streaming time fell to 17% from 21% in the last two years. YouTube gained share.
Netflix is putting more focus on advertising. Omnicom Media and Netflix said June 22 they’ve teamed up to link Acxiom audience data with Netflix’s AI-powered ad tech, letting the system create and match different ads to viewers. The initial rollout is for Omnicom Media clients in the U.S., with more countries to follow by year-end.
Megan Pagliuca, chief product officer at Omnicom Media, said “relevance drives engagement.” Netflix vice president of ads product Jon Whitticom said the tool is meant to help ads “drive outcomes.” PR Newswire
Ads are key for Netflix, which has set out plans for strong growth from a low starting point. Back in January, Reuters said Netflix projected 2026 revenue between $50.7 billion and $51.7 billion. CFO Spencer Neumann expected ad revenue to nearly double, reaching about $3 billion.
Netflix moved ahead with another gaming launch Wednesday, saying Unhinged, its new horror title featuring Zoë Kravitz, Sadie Sink and Troy Baker, will debut on June 30. Players use their phone as a controller. Netflix said there would be no ads or in-game purchases in Unhinged.
The danger is ads and games might not bring in revenue fast enough to make up for cooling viewer growth, deal uncertainty or bigger costs. MarketWatch said analysts are looking at possible margin pressure from things like sports rights, video podcasts and cloud gaming. These parts of the business often cost more up front and don’t pay off right away.
