New York, January 5, 2026, 08:38 EST — Premarket
- Netflix shares were little changed in premarket trading after CFRA cut its rating to “hold.”
- The stock is coming off a sharp Friday slide and sits well below its 52-week high.
- Investors’ next test is Netflix’s quarterly report on Jan. 20, with deal and guidance headlines in focus.
Netflix shares were marginally lower in premarket trading on Monday, after CFRA downgraded the streaming company to “hold” from “buy.” 1
The downgrade lands with Netflix nearing a pressure point on the calendar: its next earnings report later this month. With the stock still digesting a steep pullback from mid-2025 highs, even small shifts in analyst sentiment have had an outsized impact on trading.
Analysts polled by FactSet expect Netflix to earn 55 cents per share on $11.97 billion in revenue for the quarter, according to a recent earnings preview. The company’s report has become a recurring volatility trigger as investors weigh whether growth is re-accelerating fast enough to justify premium valuations.
CFRA’s Kenneth Leon moved to the sidelines and set a $100 price target, according to a summary of analyst calls. Price targets are analysts’ estimates of where a stock could trade over the next 12 months. 2
Netflix ended Friday down about 3% at $90.99, leaving the shares roughly 32% below their 52-week high. The stock is about 11% above its 52-week low, underscoring how quickly the momentum has cooled. 3
The deal backdrop has not gone away. Netflix said in December it agreed to acquire Warner Bros., including its film and television studios and HBO Max, in a cash-and-stock transaction valued at $72 billion in equity, with closing expected after a planned separation at Warner Bros. Discovery. “Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said at the time. 4
U.S. stock futures edged higher in early trading, a modest tailwind for risk assets after last week’s volatility. The broader tone, however, has done little to offset Netflix-specific positioning ahead of earnings. 5
Investors will be listening for updates on revenue growth, margins and cash generation, along with any fresh color on the path for the Warner transaction. Traders have also been quick to react to commentary around content spending and how Netflix plans to keep pricing power without pushing churn higher.
The downside scenario is straightforward: a miss on key operating metrics, cautious guidance, or any hint that the deal process will be longer or more complex than markets assume. A jump in costs tied to content, marketing or deal preparation could also reignite questions about how durable Netflix’s margin profile is in 2026.
