Netflix Stock Slump Continues Amid Warner Bros. Deal Uncertainty
Netflix shares extended their decline Wednesday, shedding nearly 5% as investors reacted to underwhelming earnings and a cloudy outlook. The streaming giant's pivot toward acquiring Warner Bros. Discovery—now facing regulatory scrutiny and competing bids—has further dampened sentiment.
The stock's 40% drop from summer highs reflects growing skepticism about Netflix's growth narrative. Notably, the company will pause stock buybacks to fund the Warner deal, signaling heightened capital allocation risks during market turbulence.
Streaming stocks now face pressure similar to crypto assets during risk-off periods. As traditional and digital markets correlate tighter, Netflix's struggles may signal broader caution toward growth-dependent tech names.
