PREVIEW: Netflix shares up after fresh WBD offer, ahead of results

Shares in Netflix NFLX.O up 0.3% on Tuesday after the video streaming company won support from the board of Warner Bros Discovery WBD.O for its bid to buy the HBO owner's studio and streaming business, ahead of its fourth-quarter financial report due out after market close

Netflix shares were outperforming amid a broader market sell-off after it switched to an all-cash offer for WBD's studio and streaming assets without increasing the $82.7 billion price in an effort to shut out rival efforts from Paramount Skydance PSKY.O to snag the Hollywood giant

Meanwhile, Wall Street analysts are expecting the video streaming co to report adj EPS of $0.55 vs $0.43 in Q4 2024 on rev of $11.97 bln, which would be up 16.8% from $10.25 bln year-ago, according to latest estimates from LSEG

In last 8 quarters NFLX met or beat analyst revenue expectations 7 times with a narrow miss in Q3 2025, while EPS beat 6 times, with its biggest miss in Q3 2025

Original content including the final season of "Stranger Things", the latest "Knives Out" movie, Christmas Day National Football League games, is expected to help produce strongest holiday-quarter revenue growth since 2020. Investors will watch for any returns from advertising and video games and will look for details of what comes after "Stranger Things", its most-watched series ever

NFLX shares last traded at $88.27 vs median PT of $120 as per LSEG, which shows 46 analyst ratings: 13 'strong buy,' 19 'buy,' 13 'hold' and 1 'sell'

YTD shares in NFLX down 5.9% vs 0.7% decline for S&P 500 communications services index .SPLRCL