Breakfast News: Investors Cheer Netflix's 'Loss'

Breakfast News: Investors Cheer Netflix’s ‘Loss’

February 27, 2026

Source: Image created by Jester AI.

1. Netflix Terminates Bids for Warner Bros

Netflix (NFLX +0.74%) has walked away from the bidding wars for Warner Bros. Discovery (WBD 0.78%), leaving Paramount Skydance (PSKY +1.12%) the winner with its all-cash offer of $31 per share. Netflix jumped more than 8% in pre-market trading, with Paramount up 6%. Warner fell nearly 2%.

• “Meaningfully more cash and a truly viable path to government approval”: Warner investor Ancora Holdings called the outcome “a win-win for shareholders and the industry.” Paramount has agreed to pay Warner $7 billion if the deal isn’t approved by regulators.
• “The deal is no longer financially attractive”: Netflix had four days to try to beat the Paramount offer, but instead said it will invest around $20 billion this year on films, TV, and other services.

2. AI Worries Hit Nvidia, Nasdaq

Nvidia (NVDA 0.68%) fell 5.5% Thursday, helping push the Nasdaq down 1.2% on the day. Fourth-quarter beats on revenue and earnings – with Q1 guidance lifted above analyst estimates – failed to soothe wider fears over the valuation of AI stocks. Nasdaq futures edged down a further 0.3% early this morning, with S&P 500 futures down nearly 0.4%.

• “Nvidia CEO Says AI Capital Spending is Appropriate, Sustainable”: Quoting a Bloomberg headline, Fool analyst Seth Jayson previously noted the AI dilemma: “As a person who owns a stack of Nvidia shares, I hope he’s right. But as a person who also owns a brain, I cannot help but wonder if it really is sustainable or appropriate.”
• SEZL, IBTA buck the trend: It wasn’t all gloom and doom for digital tech stocks, as Sezzle (SEZL +2.54%) popped 35% after Q4 gross merchandise value on its payment platform soared 35% year over year (YoY). Ibotta (IBTA 0.56%) ended the day up 29%, following Wednesday’s after-hours Q4 revenue beat, despite a 10% YoY drop.

3. After-Market Results You Might Have Missed

• Rocket Companies (RKT +0.10%) gained 8% before market open, after the Rule Breakers recommendation posted a 105% YoY Q4 revenue increase following market close – boosted by a record-high for loan origination. Non-GAAP EPS climbed 175%.
• Rocket Lab (RKLB +2.92%) – and this one does actual rockets – recorded record Q4 revenue, up 36% YoY. Recommended in Stock Advisor by Team Hidden Gems, the satellite launcher is enjoying a surge in long-term contracted work. The stock closed 3.5% up, but fell 5% in overnight trading as space-based stocks retreat.
• Zscaler (ZS +0.02%) beat its own guidance on revenue in Q2, posting a 26% rise YoY. Non-GAAP EPS jumped 30%, for another beat. But the stock lost 9% overnight, as investors clearly wanted more from the Hidden Gems rec in the face of raised tariff uncertainty.

4. Thursday’s Notable Rule Breakers Earnings

• Warby Parker (WRBY 0.89%) soared 18% by close, after the eye-care company reported its first ever full year of profit. Revenue rose 11.2% YoY, with management’s outlook suggesting double-digit revenue growth in 2026, along with further store openings.
• Coupang (CPNG 0.70%) gained 2% on the back of Q4 revenue growth of 11%, though adjusted EBITDA fell 37%. The South Korean e-commerce company posted a loss for the quarter, following December’s data-leak incident.
• “First earnings report since a former employee allegedly accessed the personal data of nearly 34 million users”: Fool analyst Alicia Alfiere noted Coupang’s offer of $1.2 billion in vouchers to impacted customers, but pointed out there’s “some debate over if this response is enough and the company may still face fines from regulators over the breach.”

5. Your Take

Based on this month’s market action, are you planning to adjust your strategy, or stay the course? Discuss with friends and family!