TLDR
- Netflix stock fell 1.5% in Wednesday premarket hours as controversy over animated series creator’s comments fueled subscription cancellation campaigns
- Elon Musk urged followers to cancel Netflix, criticizing children’s programming and amplifying conservative backlash against LGBTQ+ content
- Separate reports indicate Netflix exploring potential bid for Warner Bros. Discovery’s film studio and streaming properties including DC and HBO
- Bernstein analyst Laurent Yoon questions strategic logic behind WBD acquisition despite maintaining $1,390 price target on NFLX
- Retail trading sentiment shifted bearish on Stocktwits while shares maintain 34.5% year-to-date gains through Tuesday’s close
Netflix shares slipped 1.5% in premarket trading Wednesday as the streaming platform confronted twin challenges. Content-related controversy sparked subscriber cancellation calls while merger speculation raised questions about strategic direction.

The stock landed among Stocktwits’ top 10 trending tickers. Retail investor sentiment deteriorated from neutral to bearish in 24 hours. Message volume spiked as traders weighed the developing situations.
The controversy centers on “Dead End: Paranormal Park” creator Hamish Steele. Old social media posts resurfaced following conservative activist Charlie Kirk’s assassination. The animated series features LGBTQ+ characters and drew renewed scrutiny from critics.
Elon Musk injected himself into the debate Wednesday. He told followers to “Cancel Netflix for the health of your kids.” His posts reached millions and amplified existing criticism of children’s programming.
Stocktwits users posted bearish commentary as the situation developed. The broader market faced headwinds from the U.S. government shutdown. Multiple factors combined to pressure the stock lower.
Potential Warner Bros. Discovery Transaction
Netflix is reportedly evaluating a bid for Warner Bros. Discovery entertainment assets. The deal would target film studios and streaming platforms rather than the complete company.
The acquisition would deliver marquee franchises like DC Studios and Harry Potter. HBO Originals would join Netflix’s existing content catalog. Access to established intellectual property could reshape competitive dynamics.
Bernstein’s Laurent Yoon sees Netflix as a logical buyer. But he labels the transaction unlikely after examining the strategic fit.
The analyst referenced previous questionable media deals. AT&T’s WarnerBros purchase and Amazon’s MGM acquisition raised eyebrows in the industry.
Analyst Questions Long-Term Value
Yoon expects any engagement boost would prove temporary. Platform usage data suggests limited room for expansion beyond current levels.
Daily viewing time already averages 60 minutes per Netflix user. The metric indicates potential saturation for general entertainment content. More similar programming won’t necessarily drive meaningful growth.
Subscriber addition opportunities appear limited as well. HBO Max and Netflix share over 90% subscriber overlap in U.S. markets. International expansion faces similar penetration challenges in developed regions.
Retention rates already rank among the industry’s best. A stronger content lineup might marginally reduce churn. However, Netflix’s current performance leaves little improvement runway.
Financial Targets Remain Intact
Yoon identified obvious synergies in corporate operations and technology platforms. He characterized these savings as table stakes rather than deal justifications.
The analyst maintained his Outperform rating on Netflix stock. His $1,390 price target suggests 17% appreciation potential from recent trading levels.
Wall Street’s average target reaches $1,400.83 across coverage. The consensus view stands at Moderate Buy with 25 Buy ratings, 10 Holds, and 1 Sell recommendation.
NFLX shares gained 34.5% year-to-date through Tuesday’s market close. Wednesday’s premarket weakness reflected both content controversy and acquisition uncertainty as investors digested competing narratives.