Morgan Stanley Slashes PT on Netflix (NFLX) to $120 From $150, Keeps an Overweight Rating

Group 1: Company Developments - Netflix, Inc. is one of the most widely held stocks by hedge funds in 2025, with Morgan Stanley reducing its price target from $150 to $120 while maintaining an Overweight rating [1] - On December 17, Netflix welcomed the recommendation from Warner Bros. Discovery's Board of Directors to reject an unsolicited offer from Paramount Skydance Corporation, urging stockholders to approve the merger agreement with Netflix [2] - A definitive agreement was announced on December 5 for Netflix to acquire Warner Bros., including HBO and HBO Max, with a total enterprise value of approximately $82.7 billion, and a cash and stock transaction valued at $27.75 per WBD share [3] Group 2: Industry Insights - The media and entertainment industry is entering 2026 with "solid fundamental momentum," according to Morgan Stanley [1] - Netflix operates in around 190 countries, providing entertainment services through paid memberships and acquiring, producing, and licensing content for streaming [4]