Shares of Netflix have remained under pressure since late June, with selling accelerating in October after the company surfaced as a potential buyer of Warner Bros. Discovery.
Since June 30, Netflix stock has declined by about one-third from its recent peak. On Friday, the shares touched their lowest intraday level since April, slipping roughly 2%, according to market data.
Despite the pullback, Netflix continues to trade at around 28 times expected earnings for the next 12 months. This valuation exceeds that of streaming rivals such as Disney and Amazon, as well as Alphabet, the S&P 500, and the Nasdaq 100. However, it remains below Netflix’s five-year average multiple of 34.
Investors appear more concerned about deal-related uncertainty than Netflix’s core operations. The stock dropped 10% on October 22, marking its steepest single-day fall in more than three years. That decline followed an earnings report that sparked concerns over long-term growth prospects.
JUST IN🇺🇸🔥 $NFLX shares fall below $90 first time amid Warner Bros rejects Netflix’s Acquiration offer of its industry amid Saudis offer highest stakes to #WarnerBros in 2026.
🇺🇸🔥 Netflix just wiped out $197,000,000,000 from its market cap within hours. pic.twitter.com/cJ9EqUgkOv
— RKM (@rkmtimes) January 10, 2026Market attention then shifted to the possibility of an $82.7 billion acquisition of Warner Bros. Discovery. Shareholders have questioned the potential cost, the integration challenges, and Netflix’s limited experience with large-scale mergers.
Warner Bros. Discovery recently rejected a bid from Paramount Skydance. The bidder later confirmed a $30-per-share offer but continues to face financing hurdles. Since June, Netflix has ranked among the weakest performers in the Nasdaq 100.
Analysts remain divided on the stock’s outlook. Some investors see value in a deal if it materialises at current price levels. Others remain cautious due to integration risks and Warner Bros. Discovery’s heavy debt burden.
Christopher Brown of Synovus Securities highlighted Netflix’s price-earnings-to-growth ratio, which stands just above one. He said this metric presents a more balanced view than traditional valuation ratios. Brown added that the stock could rebound to a range of $102.50 to $109.70 if Netflix meets or exceeds fourth-quarter guidance.
Netflix will report its next earnings on January 20. Wall Street expects adjusted earnings of 56 cents per share on revenue of about $12 billion.
Meanwhile, broader technology stocks have shown strength, led by gains in companies such as Alphabet, which is approaching a $4 trillion market valuation.
