Cathie Wood Buys The Netflix Dip As Shares Slide On WBD Deal Jitters

• Wood’s purchase comes as NFLX has already dropped 9% in the new year.
• The Warner Bros. deal and concerns around 2026 expenses are overhangs for the NFLX stock.
• In other trades, Wood offloaded some Pinterest stock and bought Tempus AI shares.

Netflix, Inc. shares gained a modest 0.3% in Wednesday’s extended trading, after losing over 2% in the regular session. Amid the dip, Cathie Wood’s ARK Investment Management disclosed it had bought $7.3 million of NLFX stock, among other trades.

Wood scooped up the shares amid a recent sharp decline. Netflix stock has fallen for five straight sessions, including a 2.2% drop on Wednesday, following the streaming giant’s quarterly results and a cautious 2026 forecast.

Wood’s ARK Next Generation Internet ETF purchased 83,368 Netflix shares, following Netflix’s late Tuesday results, according to an exchange filing. In same-day trades, the fund offloaded $3 million of Pinterest stock, while ARK Genomic Revolution ETF and ARK Innovation ETF collectively bought about $5.8 million shares of Tempus AI.

Wood initiated a position in Netflix in October last year, buying over $17 million in shares then.

Netflix is in the midst of closing a significant acquisition, which is weighing on the stock given the deal’s scale and potential execution hurdles. Last month, the company agreed to acquire Warner Bros. Discovery’s streaming and studio assets in an $82.7 billion deal, winning against the other bidder, Paramount Skydance.

Besides a deal of this size and scope set to face significant regulatory hurdles, Paramount has challenged the deal and is still pressuring WBD to take it offer over Netflix’s. Earlier this week, Netflix revised its stock-and-cash offer to a ann-cash offer, making it slightly more attractive for WBD shareholders. 

Netflix’s stock is now down nearly 40% from its peak on Jun. 30, and investors are getting jittery. Although the streamer posted handsome results on Tuesday, the stock dropped due to a weak operating margin forecast, which some said fanned concerns around expenses from the WBD deal and other content investments.

However, the retail sentiment for NFLX remained firmly in the ‘extremely bullish’ zone, unchanged since last Wednesday. “$NFLX extremely bullish, loading more up. I could possibly see 88 this week, especially next week,” said a user, amid scores of comments about the long-term gains and confidence in the deal.

If the stock drops further, it would test its recent low of $85.59, set in April last year.

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