New York, Jan 27, 2026, 18:09 EST — After-hours
- Netflix shares edged down 0.1% to $85.58 in regular trading, holding steady in after-hours.
- U.S. senators scheduled a hearing on the Netflix-Warner deal for Feb. 3; meanwhile, UK lawmakers called for their own review.
- Analyst opinions split: Freedom Capital issued an upgrade, while LBBW moved to downgrade.
Netflix Inc shares showed little movement in after-hours trading Tuesday, following news that a U.S. Senate antitrust subcommittee will hold a hearing on Feb. 3 to review the company’s proposed deal with Warner Bros Discovery. The stock finished the regular session down 0.1% at $85.58, after fluctuating between $83.92 and $85.98 on about 37.6 million shares traded. (Reuters)
The hearing date comes as investors scramble to gauge the length of the takeover review and its impact on Netflix’s financing and capital returns. The stock has been moving almost like a referendum on the Warner bid, with traders quick to adjust prices after every political or regulatory update.
Over a dozen UK politicians and former officials have called on the Competition and Markets Authority to launch a full investigation, arguing the deal would “cement an already dominant player” in streaming. They warned it risks a “substantial lessening of competition” to the detriment of consumers. The watchdog declined to comment unless a formal review is underway. (Reuters)
As scrutiny intensified, analysts remained divided. Freedom Capital raised its rating on Netflix from Hold to Buy, setting a $104 price target. The firm pointed to valuation, noting a “significant share price correction” despite “strong” fourth-quarter results. (TipRanks)
LBBW analyst Sarah Lenz took a different stance, downgrading Netflix from Buy to Neutral and trimming her target price to $94, a note reported by MarketScreener shows. (MarketScreener)
PhillipCapital’s Helena Wang upgraded Netflix from Sell to Accumulate and lifted her target price to $100, Barron’s reported. The stock has dropped roughly 17% since Dec. 5, the day Netflix revealed its Warner deal, the report noted. (Barron’s)
Last week, Netflix shifted its Warner bid to an all-cash offer of $27.75 per share, putting the deal’s value at $82.7 billion. The company also announced it would halt share buybacks to preserve cash. “Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty,” said co-CEO Ted Sarandos. (Reuters)
The downside is straightforward: regulators in the U.S., UK, and Europe might stall or outright block the deal, forcing Netflix to absorb costs without gaining any new assets. Paramount Skydance, also competing for Warner, has extended its hostile tender offer deadline to Feb. 20, keeping the door open for a more expensive bidding war.
U.S. stocks closed unevenly on Tuesday. The S&P 500 edged up 0.41% to 6,978.60, and the Nasdaq climbed 0.91%. The Dow, however, slipped 0.83%. (Reuters)
Netflix faces a key date on Feb. 3, when the Senate panel plans to publicly air competitive concerns. Investors are also eyeing potential moves by UK and EU regulators—whether they’ll escalate from warnings to formal investigations. Meanwhile, all eyes remain on Paramount and whether it sticks to its Feb. 20 timeline.
