New York, Jan 6, 2026, 17:02 EST — After-hours
- NFLX down about 0.9% after the close, even as the Nasdaq-100 ETF gained about 0.9%.
- SEC filing shows director Reed Hastings exercised options and sold 426,290 shares under a 10b5-1 plan.
- CFRA cut its rating to Hold, citing risks tied to Netflix’s pending Warner Bros. Discovery acquisition ahead of Jan. 20 earnings.
Netflix, Inc. shares slipped 0.9% to $90.65 in after-hours trade on Tuesday. A Form 4 filing — a U.S. Securities and Exchange Commission disclosure of insider stock transactions — showed director Reed Hastings sold 426,290 shares for about $39.1 million. The trades were made under a pre-arranged Rule 10b5-1 plan, the filing said.
The filing lands two weeks before Netflix is due to report fourth-quarter results on Jan. 20, when investors will look for signs of demand and pricing power in a crowded streaming market. Netflix said it will publish results and its business outlook shortly after the U.S. close and host a live video interview with co-CEOs Ted Sarandos and Greg Peters and CFO Spence Neumann.
On Monday, CFRA analyst Kenneth Leon downgraded Netflix to Hold from Buy and cut his price target to $100 from $130, citing the company’s pending acquisition of Warner Bros. Discovery. “Netflix’s strategy for decades has not involved acquisitions,” Leon wrote, adding that Warner’s high debt and the risk of a bidding war could lift Netflix’s financing costs. TipRanks
Netflix and Warner Bros. Discovery announced in December they had reached a definitive agreement under which Netflix would acquire Warner Bros., including its film and television studios, HBO Max and HBO. The companies said WBD shareholders would receive $23.25 in cash and $4.50 in Netflix stock per WBD share, valuing WBD at $27.75 per share, with the stock component subject to a collar tied to Netflix’s 15-day VWAP — a volume-weighted average price — before closing. Wells Fargo, BNP and HSBC are providing committed debt financing, the press release said.
Netflix’s decline came on a broadly higher day for U.S. equities, with the Nasdaq-100 ETF up about 0.9% and the S&P 500 ETF up about 0.6%. The stock remains well below its 50-day and 200-day moving averages, about $103.40 and $113.37, according to Yahoo Finance data.
But the next directional move may hinge on Netflix’s guidance and commentary on spending and subscriber trends, especially if management strikes a cautious tone. Any delay or added cost tied to the Warner transaction could keep pressure on a stock already off its 52-week highs.
The next clear catalyst is Netflix’s Jan. 20 earnings report and management Q&A after the U.S. close.
