These Experts Think Netflix Will Be Fine Even If It Doesn't Get to Buy Warner Bros.

ETHReserveBank · 2026-02-20T18:33:47+00:00

Wedbush analysts assert Netflix will thrive even if its acquisition of Warner Bros. Discovery falters, maintaining a healthy business and growth outlook. Investors remain cautious about regulatory challenges, yet Netflix's fundamentals appear strong.

ETHReserveBank

2026-02-20 18:33:47

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Key Takeaways

Wedbush analysts believe Netflix will be fine even if its planned acquisition of Warner Bros. Discovery doesn’t go through.
The analysts believe the streaming giant’s business is “entirely healthy on its own.”

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If Netflix can’t land WBD, it’s NBD.

That notion—that streaming-video giant Netflix (NFLX) will be just fine if its planned multibillion-dollar merger with Warner Bros. Discovery (WBD) doesn’t go through—is the opinion of analysts at Wedbush, who on Friday reiterated their bullish rating and $115 price target on Netflix shares. That target, which is nearly 50% above Netflix’s current stock price, is around the Street average, according to Visible Alpha.

Wedbush’s report landed at the close of a week in which the deal, announced in December, embarked down the latest leg of its winding road. Warner Bros. reopened talks with alternative (and at times hostile) suitor Paramount Skydance (PSKY), injecting fresh uncertainty, and the possibility of another round of competing bids, into the process.

Why This Matters to Investors

Netflix may need to pay more than it expected for Warner Bros. Discover after the latter company reopened talks with Paramount Skydance. But some analysts believe Netflix could just as well move on from the deal.

Meanwhile, investors continue to grapple with the question of whether Netflix’s bid would ultimately face insurmountable regulatory hurdles.

But even if it doesn’t, Wedbush wrote, Netflix “does not need this deal. … Its business is entirely healthy on its own, with a burgeoning global advertising business.”

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Netflix last month reported financial results that included nearly 18% year-over-year revenue growth in the fourth quarter, as well as widening operating margins. The company told investors to expect 15% sales growth in the current quarter.

Shares of Netflix, down more than 20% over the past 12 months, were recently up more than 1%. (Read Investopedia’s full coverage of today’s trading here.) Warner Bros. shares were edging higher Friday afternoon, while Paramount’s were down about 1%.

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