Photographer: Ethan Swope/Bloomberg Skepticism surrounding Netflix Inc.’s proposed acquisition of Warner Bros. Discovery Inc. triggered a $40 billion wipeout in the company’s market value in just six sessions. To retail traders, that’s a screaming buy signal. Amateur investors have been snapping up shares of the streaming giant even as it dropped 15% from Dec. 2 to Dec. 10, its worst six-session losing streak since May 2022, while Wall Street weighs the implications of a protracted bidding war. Netflix w ...

Investors with a lot of money to spend have taken a bullish stance on Netflix (NASDAQ:NFLX).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NFLX, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scanner spotted ...

Core Viewpoint - Wall Street is questioning whether shares are oversold amid the ongoing Warner Bros. Discovery takeover situation [1] Group 1 - The Warner Bros. Discovery takeover saga continues to unfold, impacting investor sentiment and stock performance [1] - Analysts are beginning to see potential value in the shares, suggesting a possible rebound as the market reassesses the situation [1] - The prolonged nature of the takeover discussions has led to increased scrutiny of the company's stock valuation [1]

Core Viewpoint - The rise of stock splits among high-profile companies like Netflix and Lucid Group is generating optimism on Wall Street, with potential significant upside for investors if analyst price targets are met [2][6]. Group 1: Stock Splits and Market Impact - Stock splits have become a trend on Wall Street, contributing to investor enthusiasm and market performance [2]. - Five notable companies completed stock splits in 2025, including Netflix, O'Reilly Automotive, Lucid Group, Fastenal, and Interactive Brokers [3]. - A stock split is a superficial adjustment that does not impact a company's market capitalization or operational performance [4]. Group 2: Netflix Analysis - Netflix's stock is projected to have a 55% upside, with a price target of $1,500 (split-adjusted to $150) set by Jefferies analyst James Hawley [7][8]. - North American sales growth for Netflix has increased to 15% from 9%, indicating low customer churn despite price hikes [8]. - Netflix is expected to grow its earnings per share (EPS) by over 20% annually in the next three to five years [9]. - The company has successfully introduced an advertising-based tier, attracting approximately 94 million subscribers as of May 2025 [11]. - Netflix's recent acquisition of Warner Bros. Discovery for $82.7 billion raises antitrust concerns that may affect its stock performance [13][14]. Group 3: Lucid Group Analysis - Lucid Group's stock has an implied upside of 135%, with a price target of $30 set by Benchmark's Mickey Legg [16][18]. - The company completed a 1-for-10 reverse split, raising its share price from around $2 to approximately $20 [16]. - Lucid's partnership with Uber and Nuro for a global robotaxi program is seen as a positive development [18]. - However, Lucid has faced significant production challenges, with a drastic reduction in production guidance from 90,000 units to just 9,000 for 2024 [21]. - The company has incurred substantial cash burn, losing over $2 billion in the first nine months of 2025 and nearly $14.8 billion since inception, raising concerns about its financial viability [23][24].

Core Viewpoint - The competition between Paramount Skydance and Netflix for Warner Bros. Discovery has intensified, with Netflix's offer valued at $72 billion and Paramount making a hostile bid of $30 per share [1][2]. Group 1: Company Offers - Netflix's acquisition proposal includes benefits for consumers and creators, emphasizing a more favorable outcome if their bid is successful [6]. - Paramount argues that its offer is more likely to gain regulatory approval and provides greater certainty for Hollywood [6]. Group 2: Industry Reactions - The bidding war has sparked a meme frenzy on social media, with users humorously commenting on the competition between the two companies [3][4]. - Some industry figures and fans are expressing concerns about the implications of further consolidation in Hollywood, using humor to voice their opposition to the potential merger [4][5]. Group 3: Future Implications - The outcome of this bidding war could lead to job cuts in the entertainment industry as major players consolidate their power [7]. - Trends such as increasing streaming service prices and a decline in theatrical releases may continue as companies focus on producing less content [7].

Core Viewpoint - The recommendation for Netflix, Inc. (NASDAQ: NFLX) shares has been raised from hold to buy following the proposed acquisition of Warner Bros. assets [1] Group 1: Company Analysis - The acquisition of Warner Bros. assets is expected to enhance Netflix's content library and competitive position in the streaming market [1] - The analyst has over 5 years of experience in equity analysis in Latin America, providing in-depth research and insights for informed investment decisions [1]

Core Insights - YouTube is set to introduce new genre-based subscription plans for YouTube TV in the US early next year, highlighting its increasing influence in the American pay-TV market and its strategy to attract sports fans [1][4] Group 1: New Subscription Plans - The new "YouTube TV Plans" will feature over 10 genre-based packages, including a dedicated sports plan with channels like ESPN, FS1, and NBC Sports Network [1][4] - Viewers will have the option to add NFL Sunday Ticket and RedZone, while retaining features such as unlimited DVR and multiview, which allows watching four live streams on one screen [2] Group 2: Competitive Landscape - Sports content is becoming a crucial area for streaming platforms as they aim to draw in and retain subscribers amid increasing competition and the trend of cord-cutting [4] - YouTube TV, which offers more than 100 channels in its main plan, is leveraging sports to enhance its competitive position against rivals, having surpassed 125 million paid subscribers globally earlier this year [5] - According to Nielsen, YouTube now holds the largest share of TV viewing in the US, surpassing streaming competitor Netflix and traditional media companies like Disney [5] Group 3: User Control and Advertising - The new plans are designed to provide users with more control over their viewing preferences, whether they seek general entertainment or niche genres like news or family content [6] - Additionally, YouTube will start serving ads on Shorts for the mobile web, expanding the ad format beyond its website and introducing comments on eligible Shorts ads [6]

Core Insights - The new packages will enhance viewer customization options in the streaming industry, indicating a shift towards more personalized content delivery [1] Group 1 - The introduction of new packages adds to the already crowded streaming market, suggesting increased competition among providers [1]

Core Insights - Netflix's stock experienced a decline of 9.4% over the past five days following a significant deal with Warner Bros. Discovery, while leveraged ETFs tracking Netflix have seen even larger declines due to the nature of their structure [2][4] Group 1: Leveraged ETFs Performance - The Direxion Daily NFLX Bull 2X Shares (NFXL) is down by 5.5% year to date, despite Netflix stock being up by 9% [2] - The Direxion Daily NFLX Bear 1X Shares ETF (NFXS) has also declined by over 14% year to date, illustrating the volatility and decay associated with leveraged ETFs [4] - Leveraged ETFs are designed for experienced traders and are not intended for long-term holding due to their tendency to lag behind the performance of the underlying stocks [4] Group 2: Mechanisms Behind Leveraged ETFs - The performance of leveraged ETFs is affected by "decay," which refers to their tendency to lag the securities they track, especially in volatile markets [2][6] - The leverage in these ETFs comes from the sizing of swap agreements, which can obscure the actual risk and return profile for investors [5] - Volatility decay means that when an investment loses value, it must increase by a higher percentage to return to its original value, a phenomenon that is amplified in leveraged ETFs [6]

Netflix has been hit with a consumer lawsuit seeking to block the online video giant’s planned $72bn acquisition of Warner Bros Discovery’s studio and streaming businesses.The proposed class action was filed on Monday by a subscriber to Warner Bros-owned HBO Max who said the proposed deal threatened to reduce competition in the US subscription video-on-demand market.Some members of Congress have sharply questioned Netflix’s proposal, which is expected to face significant US regulatory scrutiny under antitru ...