Honestly, if you've glanced at your portfolio today and saw Netflix (NFLX) in the red, you aren't alone in feeling a bit of whiplash. It feels weird. We’re talking about the king of streaming, the company that basically invented the "binge," yet the stock has been acting like a teenager in a bad mood lately.
As of Tuesday, January 13, 2026, Netflix is trading around the $90 mark. That's a far cry from the triple-digit glory days of mid-2025. It’s down, but the why is a tangled mess of corporate ego, massive debt, and a high-stakes bidding war that sounds like a plot from one of their own political thrillers.
The $82.7 Billion Elephant in the Room
The biggest reason why is netflix stock down today is actually a deal that hasn't even happened yet. Netflix is trying to buy the film and TV assets of Warner Bros. Discovery (WBD).
It sounds like a dream on paper, right? Imagine Stranger Things and House of the Dragon under one roof. But Wall Street is terrified. To make this happen, Netflix is looking at taking on tens of billions in new debt. For a company that finally got its cash flow under control, this feels like a massive step backward into the red.
Then there’s the "Paramount Problem." A company called Paramount Skydance is trying to swoop in with a hostile, all-cash offer for the same assets. Today, news broke that Netflix is considering ditching its original 80/20 cash-and-stock offer to go "all-cash" just to keep up.
Investors hate this. Cash is expensive. Debt is heavy.
Uncertainty is a Stock Killer
Markets hate not knowing. Right now, we don't know:
- If regulators will even let a Netflix-Warner merger happen (antitrust vibes are strong).
- If Netflix will have to overpay to beat Paramount.
- If the $5.8 billion "breakup fee" will be triggered if the deal falls apart.
When big questions like these hang in the air, big investors usually sell first and ask questions later. That’s a huge part of the downward pressure we’re seeing right now.
Earnings Jitters and the Q4 Shadow
We are exactly one week away from the Q4 earnings call on January 20. Usually, this is a time for hype. But the "pattern" is broken.
In the past, Netflix could just say "we added 5 million subscribers" and the stock would moon. Not anymore. They stopped reporting quarterly subscriber numbers a while ago, focusing instead on revenue and "engagement."
Analysts like Adam Spatacco have pointed out that while revenue is growing, the bottom line is getting squeezed. The ad-supported tier is doing okay, but it hasn't become the golden goose everyone hoped for yet. There’s a fear that next week's report might show that the low-hanging fruit of password-sharing crackdowns has already been picked.
Competition isn't just Disney+ anymore
It’s 2026. The competition is everywhere. YouTube is eating into "eyeball time" faster than most people realize. TikTok is a monster. When you only have 24 hours in a day, every minute you spend watching a MrBeast video is a minute you aren't on Netflix.
Investors are starting to price in this "maturity" of the streaming market. Growth is slowing to single digits globally. That makes a high Price-to-Earnings (P/E) ratio—which Netflix still has—look very risky.
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The Technical Fallout of the 10-for-1 Split
Remember the stock split back in November 2025? Netflix did a 10-for-1 split to make shares more "accessible."
It’s a classic move, but since that split, the stock has plummeted nearly 20%. Sometimes, splits invite a lot of retail "noise" and volatility. When the stock was $600 or $900, it moved in big, heavy increments. Now that it’s under $100, it feels more like a playground for day traders.
Psychologically, seeing a stock drop from $130 (the post-split high) to $90 feels different than the pre-split drops. It’s created a "sell the news" cycle that the company hasn't been able to break out of.
Is the Sell-off Overdone?
Look, it’s not all doom. Netflix is still profitable. They’ve got a massive content slate for 2026, including Bridgerton Season 4 and that new Matt Damon flick, The Rip.
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Some analysts, including those at The Motley Fool, think the stock is actually undervalued under $100. They argue that the Warner Bros. deal, while risky, would give Netflix a "content fortress" that no one could breach.
But for today? Today is about the fear of the unknown. It’s about the cost of debt in a world where "getting bigger" might actually mean "getting slower."
What to Watch Next
If you're holding or thinking about buying, keep your eyes on two things:
- January 20 Earnings: This is the make-or-break moment. If they beat expectations on ad revenue, the stock could rebound fast.
- The Bidding War: If Netflix walks away from the Warner Bros. deal, the stock might actually rise because the debt threat disappears.
Actionable Insight: For long-term investors, the current dip below $100 represents a 30% discount from last year's highs. However, with the earnings report just days away, the "wait-and-see" approach is the safest play to avoid getting caught in the post-earnings volatility. If you do buy, consider scaling in slowly rather than going all-in before the January 20th numbers are public.