Netflix Inc (NASDAQ:NFLX) shares trading marginally lower on Thursday. New reports suggest the company has plenty of cash available to raise its bid for Warner Bros.
- Netflix stock is trading at depressed levels. Where are NFLX shares going?
A High‑Stakes Bidding Battle
Netflix’s ability to increase its offer was confirmed by two people familiar with the matter who told Reuters the company could match or exceed any higher bid from Paramount Skydance Corp (NASDAQ:PSKY). The two media giants have been locked in a high‑stakes contest for Warner Bros Discovery Inc (NASDAQ:WBD) and its deep library of franchises, including “Harry Potter,” “Game of Thrones,” DC Comics and Superman.
Netflix has offered $27.75 per share, valuing Warner Bros’ studio and streaming assets at $82.7 billion. Paramount, meanwhile, has put forward a $108.4 billion bid for the entire company, which includes Discovery Global and its cable networks such as CNN and HGTV.
Warner Bros is still preparing for a March 20 shareholder vote on Netflix’s offer, but has given Paramount a week to submit a stronger proposal.
Despite Netflix’s financial flexibility, investors are uneasy. The $82.7 billion price tag represents a massive commitment that would reshape Netflix’s balance sheet and capital strategy.
Technical Setup Shows Persistent Weakness
Netflix is currently positioned below all key moving averages, indicating a bearish trend. The stock is trading 5.1% below its 20-day SMA, 12.2% below its 50-day SMA and 30.3% below its 200-day SMA, which suggests ongoing weakness in the price action.
The RSI is currently at 31.72, which is considered neutral but is approaching oversold territory, indicating that while the stock isn’t yet oversold, it could be nearing a point where a bounce might occur if buying interest picks up.
MACD is below its signal line, indicating bearish pressure on Netflix’s stock, suggesting that momentum is still favoring sellers, and traders should be cautious about potential further declines.
Key resistance is at $84.50, while support is likely to be found somewhere around $70. If the stock approaches resistance, it could face selling pressure, while a break below the current price might signal a continuation of the downtrend.
In December, a death cross occurred when the 50-day SMA crossed below the 200-day SMA, which is a strong bearish signal. This crossover typically indicates that the stock could continue to struggle in the near term, as it reflects a shift in trend dynamics.
Looking at the 12-month performance, Netflix’s stock has declined by 25.71%, which highlights a significant downtrend over the past year. This longer-term perspective reinforces the bearish sentiment, suggesting that traders should remain cautious and watch for signs of reversal before considering long positions.
NFLX Price Action: Netflix shares were down 0.96% at $77.24 at the time of publication on Thursday. The stock is near its 52-week low of $75.23, according to Benzinga Pro.
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