New York, Jan 16, 2026, 17:50 EST — After-hours.
- Netflix shares slipped roughly 0.1% in after-hours trading as KeyBanc lowered its price target to $110 but maintained an Overweight rating
- Attention now turns to Jan. 20 earnings and the specifics of the proposed Warner Bros asset deal
- U.S. markets were closed Monday for MLK Day, shifting focus to Tuesday’s results and earnings calls
Netflix, Inc. (NFLX.O) shares dipped roughly 0.1% to $88 in after-hours trading Friday after KeyBanc cut its price target to $110 from $139, citing uncertainty over the company’s planned Warner Bros deal. The stock fluctuated between $87.82 and $88.64 during the session, with around 47 million shares traded. KeyBanc analyst Justin Patterson maintained an Overweight rating, expecting the stock to outperform peers, but noted 2026 guidance could suggest only about 200 basis points, or 2 percentage points, in operating-margin improvement.
Investors are bracing for Netflix’s Q4 results on Tuesday, expecting a boost from a packed holiday lineup — including the final season of “Stranger Things,” a new “Knives Out” movie, and Christmas Day NFL games — even as deal chatter steals the spotlight. This earnings call marks the first since Netflix announced on Dec. 5 its $82.7 billion acquisition of Warner Bros Discovery’s (WBD.O) streaming and studio assets, while Paramount Skydance (PSKY.O) has bid $108.4 billion for the entire Warner Bros Discovery. “The earnings will be overshadowed by what Netflix says about the deal … what’s next and the questions around it,” said PP Foresight analyst Paolo Pescatore. Netflix shares have dropped for four months straight, down about 6% year to date. Reuters
On Friday, U.S. stocks closed almost unchanged ahead of the long weekend, with the S&P 500, Nasdaq, and Dow all posting small losses. Markets will be closed Monday for Martin Luther King Jr. Day.
Traders are now focused on Netflix’s 2026 outlook: the pace at which advertising income grows and if gaming expenses begin to boost profits instead of weighing them down. Even a small price increase is crucial, since it immediately boosts revenue but risks driving up churn — the percentage of subscribers who cancel.
The Warner chase brings tougher questions: how Netflix would back an all-cash bid if it reaches that point, and what it plans to do with an HBO-scale library once in hand. Investors also want clarity on why regulators would approve the deal, especially if they view Netflix as a distributor rather than simply another studio.
Co-CEO Ted Sarandos sought to ease concerns, telling The New York Times that if the deal closes, Warner films will keep a 45-day theatrical release window, according to The Verge. “I want to win opening weekend,” he said. The Verge
That said, things could still unravel: a bidding war might push the price higher, or an extended review could leave the stock stuck in limbo well into 2026 guidance. If margins disappoint, investors could shift focus away from live events and zero in on their costs instead.
Netflix will release its earnings around 1:01 p.m. Pacific on Jan. 20, followed by a live video Q&A with management later that day. Traders will zero in on that call, looking for updates on deal financing, timing, and any shifts in the bid.
