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Netflix Inc. (NASDAQ: NFLX) experienced a significant rise in its share price, where the stock rose by 13.8% to close at $96.24 on February 27, 2026.
This rise in the share price is a result of the company's decision to withdraw from its pursuit of acquiring the assets of Warner Bros. Discovery, ending the months-long bidding war with Paramount Skydance. This move by the company has boosted the confidence of the market, and hence, analysts are revising the price targets for Netflix in 2026.
The move by the company to withdraw from the acquisition deal is a crucial step for Netflix, where the company had earlier planned to acquire the film and television studios, along with the HBO Max streaming service, of Warner Bros. for an acquisition deal worth $83 billion.
However, the recent move by Paramount to raise its bid to $32 per share has prompted Netflix to withdraw from the deal, stating that the deal is no longer financially attractive to the company.
This move by the company, although indicating its cautious nature, has resulted in the share price of the company surging significantly, with the shares of the company opening sharply higher and touching a high of $96.75 in the intraday session, eventually closing at $96.24.
The recent surge in the share price of Netflix is a positive move for the company, especially after facing a tough 2025, when the shares of the company declined by 38% from a high of $134.12 in June 2025.
Also Read: Netflix Stock Rebounds to $86 as Investors Weigh 2026 Outlook and Warner Bros Deal
Following the stock price rise of Netflix, analysts are revising their price predictions for the company’s stock in 2026. Netflix recently announced its fourth-quarter results, which included a 17.6% year-over-year increase in revenue and an increase in the company’s advertising revenue.
Netflix’s total revenue in Q4 2025 was $12.05 billion, which was well above expectations. The company’s ad revenue was also above $1.5 billion. The company is expected to grow its revenue by 12-14% in 2026. Its operating margins are also expected to increase to 31.5%. The removal of the Warner Bros. acquisition burden is a positive sign for Netflix.
The company is now focusing on its strengths in content creation and the expansion of its ad revenue and its global subscriber base. Analysts are predicting the price of Netflix’s stock in 2026 to move up between $115 and $130. These predictions are well above the company’s current price of $96.24.
The price-earnings ratio of Netflix is in the low 30s compared to its historical price-earnings ratio in the mid-60s. Netflix is an attractive stock for growth investors. Netflix is still the market leader in the content creation space despite the entry of competitors such as Disney+ and Amazon’s Prime Video.
As of February 28, 2026, the company has a market capitalization of over $406 billion. Its 52-week range is between $75.01 and $134.12, and the company has robust institutional ownership, suggesting that the company is viewed to have a bright future ahead of it.
Considering the company’s strategic move to pull out of the Warner Bros. deal, the company is now in a better position to direct its resources to its growth drivers, thereby increasing its stock price in the near term.
