Netflix shares at 104.00: WBD Streaming deal and key price levels

Management plans to acquire the streaming division being separated from Warner Bros. Discovery Inc. — WBD Streaming & Studios — whose total content operations are valued by leading analysts at $65.0 billion. However, competitors in the deal include Paramount Skydance Corp. and Comcast Corp., while some analysts do not see Netflix as the primary contender. They believe one of the key issues is the company’s focus on promoting non-traditional values, which has drawn negative attention from the U.S. President Donald Trump’s administration, which does not welcome a potential deal with Warner Bros. Discovery Inc., whose audience largely consists of children and teenagers. This opinion was expressed by Republican Senator Roger Marshall, who suggests that the acquisition could lead to an increase in content prices.

The financial report will be published on January 15. According to preliminary estimates, revenue is expected to rise from $11.51 billion to $11.97 billion compared to $10.25 billion a year earlier, while earnings per share (EPS) will change from $5.870 to $0.551 due to the recent stock split, up from $4.27 on a 10:1 basis.

Support and resistance levels

On the daily chart, the asset is moving within a descending channel with dynamic boundaries at 119.00–102.00.

Technical indicators continue to maintain a sell signal: the fast EMAs of the Alligator indicator are moving downward away from the signal line, while the AO histogram is forming corrective bars in the negative zone.

Resistance levels: 109.00, 124.00.

Support levels: 100.00, 86.00.

Trading scenarios and Netflix stock forecast

Short positions can be opened after a decline and consolidation below the 100.00 level, with a target at 86.00. Stop-loss — around 110.00. Expected timeframe: 7 days or more.

Long positions can be opened after a rise and consolidation above the 109.00 level, with a target at 124.00. Stop-loss — 101.00.