Netflix climbs after it ends pursuit of Warner Bros Discovery

Shares of Netflix NFLX.O rise ~7% % to $90.36 premarket after it drops out of fight for Warner Bros Discovery WBD.O

Streaming giant on Thursday declined to raise its bid for the storied Hollywood studio

Meanwhile, Paramount‑Skydance's PSKY.O rises ~8%; Warner Bros Discovery WBD.O slides 2.47% premarket

WBD board will still have to terminate that deal and take up PSKY's revised offer

"This was absolutely the right move for Netflix, in our view, we estimated it was overpaying for Warner's streaming and studios when it had no need to, given its extraordinarily strong business," Brokerage Morningstar says

By moving on so quickly and avoiding further uncertainty for the co, reflected in the recent stock price, NFLX is signaling confidence in the underlying strength of its core business and the fact that this opportunity was more much more offensive than defensive in nature - Moffettnathsnson

47 analysts rate the NFLX stock rated "buy" on average; their median PT is $115, per data compiled by LSEG

As of last close, NFLX down 9.78% YTD