Netflix Goes From M&A Loser to Market Winner Without Warner Deal

Netflix Inc.’s stock price is staging a dramatic reversal triggered by management’s decision to walk away from its proposed acquisition of Warner Bros. Discovery Inc. late last month.

“The core business is phenomenal and they never needed that deal — it was a nice to have, not a must have,” Wedbush analyst Alicia Reese said. “It’s hard to look at this in any negative way.”

The streaming giant emerged as the favorite to buy Warner in early December and agreed to a $72 billion acquisition on Dec. 5 that eventually increased to $83 billion. Netflix shares immediately fell, as ...