NFLX Stock On Track For Fourth Consecutive Month In The Red As Acquisition Attempts Continue To Fail

The stock is down 10.5% this month, after closing May 8% lower.

• Netflix walked away from a planned buyout for WBD’s key assets in February. 
• More recently, on Tuesday, reports surfaced that Netflix had aggressively pursued but ultimately lost a bidding war for Roku to Fox Corporation in a deal valued at around $22 billion.
• Despite the setbacks in the company’s merger and acquisition efforts, the company continues to report strong financial results.

Netflix shares fell nearly 2% on Wednesday, extending the stock’s losing streak, after the streaming giant lost a bidding war for Roku and earlier walked away from a major acquisition attempt involving Warner Bros. Discovery.

The stock is down 10.5% this month, on track to clock its fourth consecutive month of losses.

Acquisition Setbacks Weigh On Sentiment

Netflix shares have come under sustained pressure over the past several months, weighed down by investor skepticism surrounding two notable acquisition setbacks — a massive, ultimately abandoned bid for Warner Bros. Discovery assets and a more recent loss in the pursuit of Roku.

Netflix had agreed to acquire Warner Bros. Discovery’s studios and streaming businesses in December in a deal valued at around $82.7 billion in enterprise value. The transaction, structured as a mix of cash and stock, came after a competitive bidding process and was contingent on WBD spinning off its linear networks division.

Paramount Skydance, however, continued to bid for the company and subsequently, in February, Netflix announced it would not increase its offer after Warner Bros. Discovery’s board deemed Paramount Skydance’s revised bid superior. Co-CEOs Ted Sarandos and Greg Peters stated that the higher price made the deal “no longer financially attractive.” The company received a $2.8 billion breakup fee as the deal fell apart.  

More recently, on Tuesday, reports surfaced that Netflix had aggressively pursued but ultimately lost a bidding war for Roku to Fox Corporation in a deal valued at around $22 billion.

Strong Financials Despite M&A Headwinds

Despite the acquisition setbacks, Netflix delivered strong results in the first quarter of 2026. Revenue rose 16% year-over-year to $12.25 billion, beating analyst expectations. GAAP diluted EPS came in at $1.23 — well above both the company’s guidance and consensus estimates of roughly $0.76–$0.79 — helped in part by the Warner Bros. Discovery termination fee.

The company further maintained its full-year 2026 outlook, projecting revenue between $50.7 billion and $51.7 billion and an operating margin of 31.5%. The company is now slated to report its second-quarter earnings on July 16.

How Did NFLX Retail Traders React?

On Stocktwits, retail sentiment around NFLX stayed within the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘high’ levels.  

A Stocktwits user voiced hopes for NFLX recovering in the future.

Another voiced hopes for the stock eventually revisiting all-time highs, buoyed by strong second-quarter earnings.

A third user, however, noted that the stock has been down regardless of larger market performance or trends.

According to data from Koyfin, 37 of the 50 analysts covering NFLX rate it ‘Buy’ or higher, while 13 rate it ‘Hold.’ There are no sell ratings on the stock. The 12-month average price target on NFLX is $114.15, representing a potential upside of about 48% from the stock’s last close.

NFLX stock has fallen 15% this year. 

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