Netflix co-CEO Ted Sarandos David Benito/FilmMagic via Getty Images Share on Facebook Share on X Google Preferred Share to Flipboard Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Send an Email Print the Article Post a Comment It's been more than a month since Netflix, run by co-CEOs Ted Sarandos and Greg Peters, agreed to buy Warner Bros. Discovery's studios and streaming businesses in a megadeal valued at $82.7 billion. Since then, investors have not been able to chill. After all, David Ellison and his Paramount has continued to fight for WBD by reiterating and strengthening its hostile bid. Paramount even sued WBD on Jan. 12, escalating the showdown, trying to get it to give Paramount's offer another look, while also threatening to launch a proxy fight for the company. Related Stories General News Prince Harry, Elton John, and Elizabeth Hurley Among Claimants Against Daily Mail Publisher as Landmark London Trial Gets Underway Movies Harper Steele Boards Berlin-Premiering Trans Youth Doc 'What Will I Become?' as Executive Producer (Exclusive) At the same time, Netflix's long-running focus on its streaming business would come to an end if the company manages to close the Warner deal, raising question marks about how it will run WBD's HBO Max and studio operation, and causing investor concerns that this would confuse what has so far been a more focused stock and growth story. No surprise that Netflix's stock has taken a hit. After closing the last trading day before the Warner deal announcement at $103.22, it closed Thursday at $88.05, down 15 percent. After the market closes on Tuesday, Netflix will report its fourth-quarter and full-year 2025 results, share its outlook on 2026, and hold a conference with management for analysts. The question is: will investors focus on financial and operating trends, including such recent content slate hits as the final season of Stranger Things and Emily in Paris season 5, or just focus on any deal commentary, or lack thereof? Wall Street experts mostly expect strong results for the latest quarter, but whether that will provide any temporary relief for the stock is unclear. So, let's look at what analysts expect from Netflix's latest earnings report. Pivotal Research Group analyst Alicia Reese on Thursday reiterated her "outperform" rating on Netflix's stock, but cut her price target by $25 to $115, citing the "M&A overhang." "Shares have been in decline since Netflix reported underwhelming third-quarter results and fourth-quarter guidance, after several quarters of phenomenal results, amid the overhang from the contentious pending WB acquisition," Reese argued. But the expert expects positive operating trends from the latest earnings update. "Results and guidance should underscore steady subscriber growth coupled with rising average revenue per member, driven by price increases and a growing ads business," she highlighted. "With much still to prove, we think Netflix is positioning for substantial growth in global advertising, and that should not be overlooked," Reese concluded. "We expect ad revenue to become Netflix's primary revenue driver in 2026, with significant opportunities in 2027. With increasing content spend across movies, serial content, games, live events, and podcasts, Netflix must demonstrate soon that its ad program can accelerate growth to justify the higher spend." BMO Capital Markets analyst Brian Pitz, who reiterated his "outperform" rating with a $143 stock price target in his earnings preview, also highlighted the recent challenges for the streamer's stock. "Shares have struggled amid fears of a decelerating growth story for 2026, combined with WBD's large-scale M&A, raising concerns about integration complexities and execution risk," he wrote. "However, our checks suggest a solid quarter of engagement, supported by Stranger Things, a record-setting Christmas Day NFL game, and the Jake Paul boxing match." His financial forecasts remained unchanged, including fourth-quarter and full-year 2025 revenue growth of 16 percent, "decelerating to around 13.5 percent" in 2026. About the Warner deal showdown, Pitz offered: "While WBD has entered into an $83 billion agreement to be acquired by Netflix, the process remains somewhat fluid as Paramount remains highly active in attempting to acquire WBD. We suspect that Paramount will ultimately increase its bid from $30 per share (cash), which could force Netflix to raise its bid or risk losing the asset. Netflix would receive a $2.8 billion break-up fee if WBD walks away from the deal, representing 16 percent of Netflix's estimated 2025 cash content spend. Ultimately, we question how much higher Netflix would be willing to go from their current bid of $27.75 ($23.25 in cash, $4.501 in stock), though reports suggest they are weighing shifting to an all-cash bid." The analyst remains bullish on the stock, concluding: "Netflix remains one of the