New York, Jan 30, 2026, 11:38 EST — Regular session
- Netflix shares up 0.1% as Bernstein reiterates an Outperform rating and $115 price target
- Investors focus on 2026 margin guidance, engagement trends and the Warner bid process
- Advocacy groups urge U.S. state attorneys general to move against the deal; Senate hearing set for Feb. 3
Netflix shares inched up on Friday after Bernstein SocGen reiterated an Outperform rating and a $115 price target, keeping the spotlight on a stock still fighting the hangover from a deal-driven selloff. The stock was up 0.1% at $83.28 in late morning trading. (Investing)
The move was modest, but the debate around Netflix has sharpened as its shares sit more than 35% below a June 2025 peak. Bernstein analyst Laurent Yoon pointed to three pressure points — 2026 margin expectations, engagement and the company’s pursuit of Warner Bros. Discovery — and said Netflix’s 32% EBIT margin guidance “came in well below expectations.” (EBIT margin is operating profit as a share of revenue.) (Investing)
Outside Wall Street, the politics are turning louder. A letter dated Jan. 28 urged state attorneys general to take steps to block Netflix’s proposed acquisition of Warner Bros. Discovery, arguing it would reduce competition in streaming video and film and television production. The letter said the deal would combine the first and fourth largest streaming services into one company. (American Economic Liberties Project)
The next hard date is on Capitol Hill. The Senate Judiciary antitrust subcommittee is scheduled to hold a hearing on Feb. 3 at 2:30 p.m. local time in Washington, according to a congressional listing. (Congress)
The wider market was not offering much help. The S&P 500’s biggest ETF was down about 0.5%, while the Nasdaq-100 tracker slid about 0.9% in late morning trade.
The letter’s signers included the American Economic Liberties Project, Public Knowledge and the International Documentary Association, among others. It urged “immediate public action” and called for state-level scrutiny of the transaction.
Warner Bros. Discovery shares were down 0.5% at $27.47, while rival bidder Paramount Skydance’s stock fell 1.5% to $11.09 on Friday.
Netflix and Warner Bros. Discovery said earlier this month they amended their agreement to an all-cash structure valued at $27.75 per WBD share, unchanged from the prior structure, and that the revised deal was expected to allow a stockholder vote by April 2026. “Our revised all-cash agreement will enable an expedited timeline to a stockholder vote,” Netflix co-CEO Ted Sarandos said. (Netflix)
The company is still trying to keep fundamentals in the frame. Netflix reported quarterly revenue of $12.1 billion and said it crossed 325 million paid subscribers; Chief Financial Officer Spencer Neumann told investors advertising revenue would reach “about $3 billion,” as the company pushed deeper into ads and live events. (Reuters)
Netflix has also told investors it would pause share buybacks to build cash for the Warner deal, Reuters reported last week. The stock has lost about 20% since Netflix launched its bid for Warner Bros. in early December, that report said. (Reuters)
But the deal risk is not just a U.S. story. More than a dozen UK politicians and former policymakers have urged the country’s Competition and Markets Authority to conduct a full review of Netflix’s bid, warning it could reinforce Netflix’s dominance in streaming. (Reuters)
Investors now watch for any fresh regulatory signals and for the Feb. 3 Senate hearing, where lawmakers plan to question the competitive impact of the transaction. Paramount Skydance has also kept its rival push alive, extending its hostile tender offer deadline to Feb. 20, Reuters reported. (Reuters)
