The share price of streaming leader Netflix (MAS100:NFLX) has slumped in 2026, and investors will be focused on this week’s earnings release.
NFLX – Weekly Chart
NFLX shares peaked above the $130 mark but have slumped to $88.00. The key supports are at $82.42 and $70.00.
Netflix will release earnings after the market closes on Tuesday, and the company will have to impress investors after its stock price tumbled following its acquisition plan for Warner Bros.
Fourth quarter earnings will have to show some meaningful growth to permit a higher valuation. The company is expected to show some positive viewer figures from the holiday period, but two costly bets have not yet paid off on advertising and video games.
Netflix is still facing competition from Paramount for the Warner Bros. prize, which would add key titles to the catalogue, including Friends, Harry Potter and Game of Thrones. That could allow the company to spin off popular franchises.
“The earnings will be overshadowed by what Netflix says about the deal … what’s next and the questions around it,” said PP Foresight analyst Paolo Pescatore.
The acquisition battle is expected to drag on for months as both companies try to gain investor support. Netflix is also planning to change its cash-and-stock deal into an all-cash offer, which has led to further weakness in the stock.
For Meta Platforms, the problem has been AI spending, as investors worry it will eat into profitability, and this has brought the company’s valuation down from around 57x earnings to 36x.
For traders, the bears are still in charge, and any weak rally could be a selling opportunity. If the company were to lose the race for Warner, then the stock could recover as a cash drain would disappear.
