Netflix Stock Surges as It Misses Out on Warner Bros. Deal

Despite losing out on the Warner Bros. content, Netflix's growth continues to impress investors.

Published on Mar. 8, 2026

After falling in the second half of 2025, Netflix (NASDAQ: NFLX) stock is on an upsurge as it returns to the $100 per share level. The failure of the deal to buy Warner Media assets from Warner Bros Discovery seems to have relieved investors concerned about the rising costs of the bidding war with Paramount Skydance. While Netflix loses access to a content library containing numerous iconic entertainment franchises, the company continues to grow, with 2025 revenue of $45 billion, a 16% increase from the previous year.

Why it matters

The failure of the Warner Bros. deal means Netflix will have to compete more aggressively with other streaming giants like Disney, Paramount, and Alphabet's YouTube to hold on to subscribers. However, Netflix's continued revenue growth and expanding global reach suggest the company can still achieve significant stock price appreciation, even without the Warner Bros. content.

The details

Netflix operates in more than 190 countries and has become a content creator in its own right. Expanding into ad-supported content and games has also increased its popularity. While Netflix claims under 10% of total TV time, it still has over 300 million global households subscribing to its platform, with the potential to eventually serve between 700 million and 1 billion homes. Despite the loss of the Warner Bros. content, Netflix's costs and expenses grew at a slower pace than revenue, leading to a 28% increase in operating income.

  • In the second half of 2025, Netflix stock fell.
  • In 2025, Netflix's revenue was $45 billion, a 16% increase from the previous year.

The players

Netflix

An American entertainment company that provides streaming services, including movies, television series, and other content.

Warner Bros. Discovery

An American media and entertainment conglomerate that was formed by the merger of Warner Media and Discovery, Inc.

Paramount Skydance

A media company that produces and distributes films, television series, and other content.

Disney

An American multinational entertainment and media conglomerate.

Alphabet

The parent company of Google, which owns the YouTube platform.

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The takeaway

Despite the loss of the Warner Bros. content, Netflix's continued revenue growth, expanding global reach, and cost management suggest the company can still achieve significant stock price appreciation. However, the company will face increased competition from other streaming giants, and its ability to develop new revenue sources will be crucial to its long-term success.