NEW YORK, January 4, 2026, 06:20 ET — Market closed
- Netflix shares last closed down about 3% at $90.99, lagging a steady-to-higher broader market on Friday.
- Focus remains on Netflix’s proposed Warner Bros. studios/HBO Max deal and Paramount’s rival bid for Warner Bros. Discovery.
- Netflix reports fourth-quarter results on Jan. 20, the next key catalyst.
Netflix shares last closed down $2.78, or about 3%, at $90.99 on Friday, the first trading day of 2026. The stock traded between $90.83 and $93.61, with about 41 million shares changing hands.
The slide matters now because investors are still digesting Netflix’s agreement to buy Warner Bros. Discovery’s film and TV studios and streaming assets, including HBO and HBO Max. Netflix said the cash-and-stock transaction values Warner at $27.75 per share, with an enterprise value of about $82.7 billion — a measure that includes debt — and it expects the deal to close in 12 to 18 months after Warner completes a planned spinoff of its Global Networks business in 2026.
A nearer catalyst comes on Jan. 20, when Netflix said it will post fourth-quarter results and its business outlook on its investor relations site at about 4:01 p.m. ET. A live video interview with co-CEOs Ted Sarandos and Greg Peters and other executives is scheduled for 4:45 p.m. ET.
Broader markets did not provide much cover. The S&P 500 rose 0.2% on Friday, while the Nasdaq composite was roughly flat, weighed down by losses for Microsoft and Tesla; the Dow climbed 0.7%, according to the Associated Press.
Complicating the backdrop, Paramount Skydance is still pushing a rival deal for Warner Bros. Discovery. Paramount said it amended its $30-per-share all-cash tender offer — a bid made directly to shareholders — and extended the offer’s expiration to 5 p.m. New York time on Jan. 21, while also increasing a “reverse termination fee” to $5.8 billion, a penalty it would pay if regulators block the transaction. PR Newswire
Warner Bros. Discovery confirmed receipt of the amended offer and said its board is not modifying its recommendation in favor of the Netflix merger agreement. The company advised shareholders not to take action “at this time,” it said. Warner Bros. Discovery IR
For Netflix investors, the takeover battle keeps attention on execution risk: how much leverage the combined company could carry, what regulators might demand, and whether the timetable slips.
On the content front, Netflix’s “Stranger Things” series finale delivered an unusual boost to U.S. theater chains over New Year’s, MarketWatch reported, by using concession vouchers rather than traditional ticket sales. The outlet estimated about $30 million in voucher sales across roughly 600 theaters, with AMC generating about $15 million. MarketWatch
Netflix has signaled it is ready to lean more into theatrical distribution if the Warner deal closes. “When this deal closes, we will be in that business,” the company’s co-CEOs wrote in a letter to employees reported by Reuters. Reuters
Wall Street’s baseline is for modest earnings growth heading into the report. Analysts tracked by Seeking Alpha estimate earnings of $0.55 per share on revenue of $11.97 billion for the upcoming quarter, after Netflix reported $0.59 per share on $11.51 billion of revenue in the prior quarter.
Before Monday’s session, investors will scan for any fresh court, regulatory or shareholder communications that could shift the Warner timetable or the Paramount bid, both of which have dominated the stock’s narrative since early December.
On the chart, traders will be watching whether NFLX holds near Friday’s intraday low of $90.83. A push back above $93.61 would erase most of Friday’s decline.
