Investors are keeping a close eye on Netflix (NFLX) stock as the streaming giant is set to report its Q4 results after market hours on Tuesday, January 20. The stock has seen a 6% decline in the first 11 trading days of 2026, and discussions are underway for Netflix to acquire Warner Bros. Discovery (WBD).

In Q4, Netflix is expected to see a 17% increase in sales to $11.97 billion and a 28% rise in EPS to $0.55. The company is projected to end fiscal 2025 with total sales up 15% to $45.1 billion and annual earnings spiking 28% to $2.53 per share.

Netflix has made an offer to acquire Warner Bros in a deal valued at $82.7 billion, which could add 95-100 million subscribers to its platform. The acquisition offer, potentially an all-cash deal, has been recommended by Warner Bros’ board over competing bids from Paramount Skydance and Comcast.

With an impressive return on invested capital (ROIC) of over 25%, acquiring Warner Bros could add over $30 billion in annual revenue to Netflix’s top line. The stock is currently trading at a forward earnings multiple of 27X, making it a tempting buy ahead of its Q4 report.

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Read more at Nasdaq: Buy Netflix Stock for a Rebound as Q4 Earnings Approach?