Netflix Shares Slide Below $90 as Market Reacts to Warner Bros. Deal Uncertainty
Summary
Netflix shares have fallen below $90, marking a decline of more than 30% since late June and a sharp reset in market expectations.
Uncertainty around a potential Warner Bros. deal has weighed heavily on sentiment, driving a significant market cap wipeout.
Investors are now reassessing Netflix’s growth outlook, competitive position, and strategic direction heading into 2026.
Shares of Netflix have slipped below the $90 level, extending a steep sell-off that has now taken more than 30% off the stock since June 30. The move has erased roughly $197 billion in market capitalisation, marking one of the company’s sharpest pullbacks in recent years.
The decline comes as uncertainty grows around a potential deal involving Warner Bros. Discovery, which investors had viewed as a possible strategic catalyst. With clarity still lacking, markets appear to be pricing in a wider range of outcomes for Netflix’s long-term positioning.
Investor sentiment has shifted noticeably as questions emerge around content scale, licensing strategy, and competitive pressure. Netflix remains a dominant player, but expectations had become elevated following strong prior performance.
The current sell-off reflects more than short-term headlines, as valuation compression has accelerated alongside broader caution toward high-growth media stocks. Netflix shares are now trading at levels that suggest investors are demanding clearer visibility on future earnings momentum.
Despite the pullback, Netflix continues to generate significant cash flow and maintains a global subscriber base that few competitors can match. The challenge now is whether management can reignite confidence without relying on transformative deal speculation.
As markets look ahead to 2026, Netflix’s next moves on content investment, partnerships, and monetisation will be closely scrutinised. Until uncertainty fades, volatility in Netflix shares may remain a defining feature of the stock’s near-term outlook.