Warner deal adds ‘noise to a once clean’ Netflix story, says Jefferies

Jefferies sees the company’s deal to buy Warner Bros. Discovery’s (WBD) streaming and studio assets as a deal that “adds noise to a once clean” Netflix (NFLX) story and expects the stock to remain range-bound in the near-term given concerns on integration risk, implications for the organic growth narrative, and whether Netflix’s growth algorithm changes post integration. FY26 guidance should provide a read on the underlying growth trajectory and signal if the acquisition is “an offensive or defensive move,” adds the analyst, who has a Buy rating and $150 price target on Netflix shares.