Investors are hesitant about Netflix’s earnings report due to concerns about its $72 billion acquisition of Warner Bros. Discovery. Analysts worry about debt accumulation and potential government interference. Suncoast Equity Management’s Eric Lynch disapproves of the deal, preferring Netflix’s previous business model. Netflix shares dropped 15% since announcing the acquisition, while the S&P 500 rose 1.5%.

There is speculation that Netflix may guide 2026 profits below consensus due to ongoing bid costs and tough financial comparisons. Analysts like Jefferies’ James Heaney believe investors need to see Q4 revenue growth of 16% and an operating margin of 32-33% to gain confidence in Netflix’s future earnings. Tune in to Netflix’s earnings call for more insights.

Read more at Yahoo Finance: Netflix faces a murky outlook as it continues to pursue Warner Bros. Discovery