|

Netflix’s $72B Warner Bros move shocks markets as Trump raises concerns

Netflix surprised Wall Street late last week with a move nobody saw coming: a $72–83 billion acquisition of Warner Bros Discovery.

If approved, Netflix would gain control of one of Hollywood’s deepest content vaults:

  • HBO originals.
  • DC superheroes.
  • Lord of the Rings.
  • Classic Warner Bros film libraries.

For viewers, this sounds like the beginning of a new streaming era. For markets, it raises hard questions:

  • Who pays for it?
  • How does it integrate?
  • Will regulators allow it?

The charts reflect those concerns.

Market reaction was immediate

After the acquisition was announced, Warner Bros Discovery (WBD) rallied around +6%, whereas Netflix shares fell by -6.73%. This could mean a few things:

  • Investors did not like the idea of Netflix entering this uncertain deal (regulatory battle ahead).
  • Warner Bros had debt costs that Netflix would need to take on.

However, it is undeniable that such an acquisition only adds to Netflix’s media empire. Therefore, this drop does not necessarily reflect a long-term judgement. It just reflects near-term uncertainty.

Political comments add pressure

Over the weekend, US President Donald Trump weighed in publicly. He said the deal “could be a problem” because of market share, and suggested he would be involved in reviewing the transaction.

His comments do not determine the outcome — but they increase visibility and scrutiny. There is now a political spotlight on the process, beyond just a story of corporate acquisition.

NFLX daily chart – Short-term pressure

Chart

On the daily timeframe, we are currently sitting at a major crossroad.

Bears are undeniably dominant, as Netflix has:

  • Broke down from a multiyear trendline.
  • Broke down from a descending channel.
  • Rejected from the 50 EMA (reflected as 1-stdev bollinger bands® on our chart) – potential suppression by the band.

However, we are also tapping into critical support:

  • $100 is a key psychological level, and Netflix has for now refused to close below.
  • Stochastic RSI is reaching oversold territory, hinting at temporary relief or pause soon.
  • Using a Fixed Range Volume Profile on the previous rally (April to July), we can see that NFLX is currently supported by the Value Area Low ($98.08).

Below all these supports, traders should be aware of a potential flush zone at $96–$98, where stop clusters are likely to build. A dip into this area would not be unusual before a rebound attempt.

Weekly chart – Longer-term structure intact

Chart

The weekly view tells a different story:

  • The 50 EMA band (1st deviation) remains intact
  • The trend is still upward
  • Weekly momentum is oversold

This suggests the long-term structure has not broken, and technically, Netflix is still optimistic in the long term. Short-term weakness is possible, but longer-term buyers have not disappeared.

Motley Fool pointed to Netflix as one of two major stock picks in 2026 that could be resilient to the much discussed AI bubble crash.

Right now, Netflix sits at the centre of a high-risk, high-reward scenario.

The long-term story is undeniable: owning Warner Bros gives Netflix control of some of the most powerful intellectual property in entertainment. This could evolve into a streaming library and content ecosystem that few competitors can match.

However, the near-term environment is messy.

  • Regulatory and political scrutiny may drag on for months.
  • Debt, financing and integration will be watched closely.
  • Headlines can move prices in either direction, quickly.
  • $100 remains a pivotal psychological level on the chart.

This creates a price environment that is more likely to chop and whipsaw than trend smoothly. Netflix can stay range-bound while markets wait for clarity — especially if the acquisition enters hearings, reviews or public commentary cycles.

Catalysts to watch

  • Any follow-up comments from Trump on competition or market share.
  • Signals from regulators on whether the deal could be challenged.
  • Clarification from Netflix on how it plans to fund the acquisition.
  • Industry pushback (cinemas, unions, studios) reacting to consolidation.

Until those catalysts break in one direction or the other, price is likely to remain choppy, reactive, and headline-driven around the $100 mark.

Author

Zorrays Junaid

Zorrays Junaid

Alchemy Markets

Zorrays Junaid has extensive combined experience in the financial markets as a portfolio manager and trading coach. More recently, he is an Analyst with Alchemy Markets, and has contributed to DailyFX and Elliott Wave Forecast in the past.

More from Zorrays Junaid
Share:

Editor's Picks

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday. 

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move. 

Gold climbs above $5,200 on geopolitical tensions, trade uncertainty

Gold price jumps to around $5,230 during the early Asian session on Tuesday. The rally of the precious metal is bolstered by heightened geopolitical tensions and global trade uncertainty following US tariff decisions. Traders brace for the US January Producer Price Index report on Friday for fresh impetus. 

Solana DeFi platform Step Finance to close operations following treasury hack

The Solana based decentralized finance platform Step Finance announced it will end all operations effective immediately following a breach that drained its treasury.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.