Netflix Stock Falls as $72B Warner Bros Deal Draws Scrutiny

Group 1 - Netflix Inc announced a $72 billion deal to acquire Warner Bros Discovery, including its film studios, HBO, and HBO Max, pending regulatory approval [1] - The deal is facing scrutiny due to concerns about the significant market share it would give Netflix, as noted by President Donald Trump [1] - Analysts have reacted to the news by downgrading Netflix's stock rating, with Rosenblatt Securities and Pivotal Research moving from "buy" to "neutral" and "hold," respectively [2] Group 2 - Despite the downgrades, the majority of analysts remain bullish on Netflix, with 33 out of 47 analysts maintaining a "buy" rating [2] - Netflix is currently experiencing a potential fourth consecutive loss and has recently faced its worst week since October, although it still holds an 8.1% year-to-date gain [3] - The stock has dropped to its lowest level since April, influenced by pressure from the 20-day moving average [3] Group 3 - The options market shows optimism for Netflix, with a 50-day call/put volume ratio of 1.63, indicating higher call volume compared to puts [3] - Today's trading activity has seen 286,000 calls and 184,000 puts exchanged, which is three times the typical volume for this time [4] - The most popular options contract is the weekly 12/12 100-strike call, with new positions being sold to open [4]