Netflix stock fell sharply from the June 2025 peak as investors weighed uncertainty around Netflix’s proposed Warner Bros. Discovery acquisition. NFLX traded near $76.88 in mid-February 2026 after a weekly drop of more than 6%.
NFLX stock showed a 26% decline over one year and an 18% decline year-to-date.
On a pre-split basis, the move translates from about $1,323 in June 2025 to about $769, a roughly 42% decline.
Moreover, Netflix completed a ten-for-one stock split in November 2025. Trading began on a split-adjusted basis at market open on Nov. 17, 2025.
Netflix agreed to a transaction that implies about $72.0 billion in equity value and about $82.7 billion in enterprise value. The original structure combined cash and stock and implied $27.75 per WBD share.
Netflix later amended the agreement to an all-cash transaction and said it “simplifies the transaction structure” and “accelerates the path” to a shareholder vote.
The companies are linked to a planned separation at Warner Bros. Discovery. WBD plans to separate Warner Bros. and Discovery Global into two public companies. The parties expect that the separation will occur in Q3 2026 before closing.
Netflix also signaled higher 2026 spending tied to content and product development, which investors have watched for margin impact.
Regulators have started reviewing the proposed acquisition, including US antitrust steps. Deal documents include a termination fee structure. If WBD ends the Netflix agreement under specified conditions, it may owe a $2.8 billion termination fee.
Paramount has pursued a competing all-cash offer for WBD at $30.00 per share. Paramount said it would fund payment of the $2.8 billion break fee “concurrently with the termination” of the Netflix agreement. Paramount also described a quarterly “ticking” feature that could add cash consideration if closing extends into 2027.
Also Read: Netflix Faces Stock Slide as Musk Urges Users to Cancel Subscriptions Before Q3 Results
Retail discussion increased on Reddit and X as NFLX slid. A prominent r/stocks thread titled “What has happened to NFLX stock?” drew 283 upvotes and 309 comments. A sentiment gauge showed a neutral reading near 42 in mid-February after 78–82 in late January.
Another measure tied the strongest quarterly driver to the NFLX–WBD deal debate, with 13,584 upvotes.
Analyst coverage leaned positive despite the pullback. Investors have monitored deal milestones closely. Estimates showed 34 Buy ratings and an average $119 price target, which implies about 55% upside from the mid-$70s level.
Forecasts projected 26.5% EPS growth in 2026 and pointed to expansion into live sports, podcasts, and experiences. WBD traded near $28.12, alongside a 1.8x price-to-sales ratio in the same period.