Netflix(US:NFLX) Yahoo Finance·2025-12-19 19:30Core Viewpoint - Netflix has experienced significant volatility in its stock performance throughout the year, initially seen as a safe investment but later facing challenges due to market dynamics and a controversial acquisition [1][2]. Group 1: Stock Performance - Netflix's stock was outperforming tech peers in the first four months of the year but later traded flat before crashing after its Q3 2025 earnings report [1][2]. - The stock is currently up only around 6% for the year, significantly trailing the S&P 500 Index, and has fallen almost 30% from its 2025 highs, entering bear market territory [6]. Group 2: Acquisition of Warner Bros. - Netflix's proposed acquisition of Warner Bros. is valued at an enterprise value of $82.7 billion, marking the largest deal in the company's history [4]. - Paramount has made a counteroffer of $30 per share in cash, exceeding Netflix's offer of $27.75 in cash and stock [4]. - The acquisition is expected to face regulatory scrutiny due to its size, with concerns raised by Disney's CEO regarding the potential pricing power it would grant Netflix [5]. Group 3: Analyst Reactions - Following the announcement of the WBD acquisition, several sell-side analysts downgraded Netflix's stock, citing the deal as "expensive" and "very risky" [7]. - Pivotal Research downgraded Netflix from "Buy" to "Hold," lowering its target price from $160 to $105 [7]. - Huber Research double-downgraded the stock from "Overweight" to "Underweight," slashing its target price from $137.50 to $92 [7]. - Rosenblatt downgraded Netflix from "Buy" to "Neutral," reducing its target price from $152 to $105, indicating an extended period of uncertainty for the company [7].