Netflix Stock Struggles Amid Acquisition Concerns
As of January 26, 2026, Netflix’s stock (NASDAQ: NFLX) has dropped 9% this year, amid investor concerns surrounding its attempted $83 billion acquisition of Warner Bros. Discovery. The company’s revenue growth for 2026 is projected to decline to between 12% and 14%, down from 16% in 2025, raising alarms despite a robust performance in the fourth quarter of 2025, where revenue reached $12.1 billion, a year-over-year increase of approximately 18%.
Netflix’s price-to-earnings (P/E) ratio remains high at around 34, compared to the S&P 500 average of 27, suggesting that investor expectations are elevated. The company’s guidance indicates potential challenges ahead and reflects a market adjustment to its acquisition strategies. With strong ad revenue anticipated to double, the decreasing growth rate could signal a shift in consumer preferences toward more affordable streaming options.
