Netflix Inc (NASDAQ:NFLX) shares plummeted to a new 52-week low of $75.23 on Thursday, as the streaming giant remains embroiled in a high-stakes bidding war for Warner Bros. Discovery (NASDAQ:WBD).
The stock underperformed a broader technology sell-off that saw the Nasdaq drop 1.79%.
Activist Investor Opposes Netflix Bid
The downward pressure intensified after activist investor Ancora Holdings disclosed a $200 million stake in WBD. Ancora intends to oppose Netflix’s $82.7 billion acquisition offer, favoring a rival $30-per-share bid from Paramount Skydance Corp (NASDAQ:PSKY).
Ancora argued that WBD’s board has not given “adequate consideration” to Paramount’s offer.
The drama deepened as David Ellison-led Paramount added a “ticking fee” of 25 cents per share for delays past Dec. 31, alongside a $2.8 billion termination fee payout to Netflix.
“We are making meaningful enhancements – backing this offer with billions of dollars,” Ellison stated.
DOJ Antitrust Investigation Looms
Regulatory hurdles are also weighing on sentiment. The Justice Department is reportedly investigating potential anticompetitive practices.
A civil subpoena recently sought information on whether Netflix engaged in “exclusionary conduct” to entrench monopoly power. Netflix attorney Steven Sunshine characterized the review as “totally ordinary.”
Renaissance Group Signals Long-Term Conviction
Renaissance Group boosted its NFLX position by nearly 900% quarter-over-quarter, according to its latest 13F filing. The fund now holds 355,377 shares.
Technical Analysis
The stock is currently trading 8.8% below its 20-day simple moving average (SMA) and 25.5% below its 100-day SMA, indicating a bearish trend in the short to medium term. Over the past 12 months, shares have decreased by 25.55%.
The RSI is at 29.16, indicating that the stock is in oversold territory, while the MACD is above its signal line, suggesting some bullish momentum may be present.
- Key Resistance: $83.50
- Key Support: $75.00
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Netflix, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 15.58) — Trading at a steep premium relative to peers.
- Quality: Strong (Score: 77.36) — Balance sheet remains healthy.
- Momentum: Weak (Score: 8.03) — Stock is underperforming the broader market.
NFLX Price Action: Netflix shares were down 4.19% at $76.28 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: DIA TV/ Shutterstock
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