New York, Jan 16, 2026, 11:11 AM EST — Regular session
- Netflix shares edged up roughly 0.1% in late-morning trading.
- Investors are gearing up for Netflix’s earnings report on Jan. 20, along with news on its efforts to acquire Warner Bros.
- A fresh streaming agreement with Sony Pictures boosts the content pipeline amid growing deal scrutiny.
Netflix shares edged up roughly 0.1% to $88.12 on Friday, fluctuating between $87.82 and $88.64 during the session.
Netflix’s fourth-quarter earnings, set for Tuesday, have morphed into a test of confidence in its $82.7 billion bid for Warner Bros’ streaming and studio businesses. Investors are zeroing in on specifics around cost, deal timing, and potential antitrust hurdles. Paolo Pescatore, analyst at PP Foresight, noted, “The earnings will be overshadowed by what Netflix says about the deal … what’s next and the questions around it.” 1
Timing is crucial as U.S. earnings season gears up following a holiday-shortened start. Markets have been volatile amid policy updates. “With all the noise around geopolitics and policy, earnings really have to drive the news cycle,” said Art Hogan, chief market strategist at B Riley Wealth. 2
Netflix just announced a new deal with Sony Pictures Entertainment. Under the multi-year agreement, Netflix will exclusively stream Sony’s films worldwide for the first 18 months following their theatrical and video-on-demand releases — that crucial window before movies hit other streaming platforms. 3
The deal means titles like “Spider-Man: Beyond the Spider-Verse” will debut on Netflix first, before Disney assumes control after an 18-month period. The release begins later this year as rights become available, with full global access planned by early 2029, according to the companies. 3
Analysts anticipate live events will become more visible in retention and engagement this quarter, following Netflix’s airing of Christmas Day NFL games and its expanded U.S. WWE rights, which now include the historical library. Revenue is projected to climb 16.82% to $11.97 billion, based on LSEG data cited in the report. Meanwhile, Visible Alpha expects around 10 million net additions, despite Netflix halting its subscriber count disclosures. 4
Certain analysts see the stock’s sluggishness as more about deal fatigue than its fundamental business. Wedbush’s Alicia Reese cut her valuation, citing “the ongoing overhang from pending M&A,” but highlighted low customer churn as a positive for advertisers. 5
The battle over the deal has moved into the courtroom. On Thursday, a Delaware judge refused to expedite Paramount Skydance’s lawsuit demanding more transparency from Warner Bros Discovery about its choice to support Netflix’s bid. The judge ruled Paramount didn’t prove “cognizable irreparable harm.” Paramount said it will continue pushing for information, while Warner Bros dismissed the lawsuit as an “unserious attempt to distract.” 6
That said, the upside hinges on flawless execution. A drawn-out bidding battle, stricter regulatory scrutiny in the U.S. and Europe, or slower gains in advertising and gaming might force Netflix to shoulder rising costs with little immediate reward.
U.S. indexes climbed Friday, driven by chipmakers pushing gains higher. Traders are turning their attention to a busier earnings slate next week. 7
Netflix is set to report earnings and guidance Tuesday, with investors keen on how management will discuss the quarter and the Warner Bros deal. Attention is also on Paramount’s Jan. 21 deadline for its Warner Bros Discovery tender offer, as the takeover fight could lead to revised terms.
