- Netflix shares post their best day since April.
- An options trader bet almost $14 million that Netflix losing out on its bid to acquire WBD would actually be a win.
- Stocktwits sentiment for NFLX climbed to ‘extremely bullish.’
Netflix, Inc. surged nearly 6% on Wednesday and extended gains in after-hours trading, with retail traders viewing the move as a potential turning point for the stock amid a prolonged and complicated campaign to acquire Warner Bros.
The rally, Netflix’s strongest since April 2025, comes as some investors price in the streaming giant stepping back from the transaction, a scenario they view as positive given Paramount Skydance’s aggressive bidding and the lingering regulatory overhang.
An options trader bet almost $14 million that Netflix losing out on its bid to acquire WBD would actually be a win, according to a Bloomberg analysis, which noted that this person or entity bought 55,000 May $90 call options on Wednesday and sold the same number of $105 calls to partially fund the position.
Retail Reacts
“$NFLX if they cancel their bid the stock may have bottomed yesterday,” a Stocktwits user said.
Another said they hope the rebound is the start of a reversal and that “NFLX doesn't screw us by engaging further in this bidding war with Paramount.” If the deal is canned, Netflix would resume its share buyback, this time with an extra $2.8 billion in the bank from the breakup fee, a user said.
Not all are as upbeat, though. “$NFLX selling here for small profit,” said a user. “I am scared what the news will be tomorrow… Brutal price movement until the vote and maybe even extension of the vote because of the bidding war,” said a user.
Stocktwits sentiment for NFLX has climbed sharply since late Tuesday and was ‘extremely bullish’ as of the last reading. Message volume for the ticker surged 186% over the past week.
Paramount Raises WBD Bid
Earlier in the week, Paramount submitted a higher, $31-per-share bid to acquire the entire Warner Bros. enterprise. Netflix can raise its bid in the coming days. The Warner Bros. board will then make its decision on the deal on Mar 20.
Netflix’s Wednesday gains came despite news that Republican attorneys general from 11 states had called for a Department of Justice probe into the Netflix-WBD deal over market concentration concerns – another signal that investors are increasingly betting that Netflix would ultimately back out.
Netflix CEO Ted Sarandos – who earlier discussed the concerns and offered assurances before a Senate antitrust committee – is set to meet White House officials on Thursday, Politico reported.
On the agenda are Netflix’s bid for the media giant and President Donald Trump’s demand that Netflix fire board member Susan Rice, a former Biden administration adviser, according to Politico sources.
NFLX Stock Under Pressure
Shares of Netflix and rival bidder Paramount have been under pressure over the last few months. After both companies expressed interest, Warner Bros accepted Netflix’s deal in December. However, Paramount has continued its pursuit, with Warner Bros last week agreeing to formally hear its fresh offer.
Netflix shares are down nearly 40% from their peak on Jun. 30, while Paramount shares are down nearly 50% from their peak on Sept. 23. Warner Bros. shares are climbing as the deal proceeds.
Warner Bros. is scheduled to report its fourth-quarter results after the markets close on Thursday. Bernstein, which raised its WBD price target to $27.75 from $23.5, believes the report will be important for understanding implications for the Netflix and Skydance deal process.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Read Next: Nvidia Stock Gives Up Gains Overnight After Blowout Q4 As China Concerns Dampen AI Euphoria