Netflix, Inc. has fallen 11.52% month-to-date in December, extending a weak second half of 2025, during which the stock has dropped 28.92%.
The Nasdaq-listed company (NFLX) has fallen from a monthly opening of $106.51 per share, slipping below the $100 mark to trade at $95.19 as of the week ended December 12, 2025.
In its Q3 2025 results, Netflix reported revenue of $11.51 billion, representing a year-on-year increase of about 27% and largely in line with market expectations.
Profitability, however, disappointed.
- Net profit came in at $2.5 billion, missing the $3.02 billion forecast, while earnings per share fell to $5.87 compared with the expected $7.00.
A key drag on performance was a tax dispute in Brazil, which resulted in a one-time tax charge exceeding $600 million. This significantly weighed on results and reduced the operating margin to 28%.
Despite the sharp decline in the second half of the year, the pullback in Netflix’s share price could present a potential buy-the-dip opportunity for long-term investors.
According to analysts, investors are likely seeking clarity over the Netflix bidding tussle with Paramount for the Warner Bros acquisition.
The bidding clash
Netflix announced on December 5th that it would acquire Warner Bros in a deal worth $82.7 billion, positioning itself as the winner of the bidding war that began in September with Paramount over the Hollywood studio.
However, on Monday, December 8th, Paramount launched its own hostile takeover bid for Warner Bros, offering $108.4 billion, higher than Netflix’s offer, in an attempt to derail the deal.
- The acquisition is still subject to approval by the US Federal Communications Commission (FCC) and is expected to take 12 to 18 months to complete.
During this period, Warner Bros. Discovery plans to spin off its global networks division, including CNN, TNT, and the Discovery Channel, into a new publicly traded company.
Netflix reassured subscribers via email that “nothing is changing today. Both streaming services will continue to operate separately.”
Warner Bros. is expected to maintain theatrical releases through 2029, with Netflix set to harness this strength as a streaming service, while Hollywood remains focused on the importance of theatrical releases.
Despite the potential win in the bidding war, Netflix shares have yet to react positively, falling 11.52% month-to-date in December 2025.
Market trend
Netflix started 2025 strong, climbing 9.59% in January from $89.55 to $97.68. February ended slightly in the green, but March saw a 4.90% decline, creating a shallow dip at $93.25.
Investors likely bought into this dip, driving shares up 21.36% in April, Netflix’s best month of the year, while bullish momentum continued through June.
- The stock closed the first half of 2025 up 50.24% at $133.91.
The second half of the year, however, has been mostly bearish, with only August and October seeing gains.
NFLX has fallen below the $100 mark and was trading at $95.19 as of the week ended December 12, 2025.
Year-to-date, NFLX is still up 6.80%.
