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Market Data Table

Breakfast News: Netflix Considers All-Cash WBD Bid

January 14, 2026

Tuesday's Markets
S&P 500 6,964 (-0.19%)
Nasdaq 23,710 (-0.10%)
Dow 49,192 (-0.80%)
Bitcoin $94,436 (+3.34%)

A chart showing Netflix's quarterly net profit margin over the past decade.

1) Netflix to Raise the Warner Bros. Stakes?

Netflix (NASDAQ:NFLX) is thinking of turning its acquisition bid for Warner Bros. Discovery's (NASDAQ:WBD) studios and streaming business into an all-cash offer, reports Bloomberg. It comes after Warner last week rejected a hostile approach from Paramount Skydance (NASDAQ:PSKY) in favor of Netflix.

"Netflix has a very strong balance sheet with modest net leverage": Stephen Flynn at Bloomberg Intelligence pointed to Netflix's ability to raise cash, with the streaming giant having already secured $59 billion in loans.
"WBD has failed to include any disclosure about how it valued … the overall Netflix transaction": Paramount Skydance CEO David Ellison has raised the stakes, with a lawsuit launched against Warner's rebuff. Netflix stock has lost 25% since Warner hinted it was open to bids in October.

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2) Hidden Gems Recs Hit by Rate Cut Pressure

Visa (NYSE:V) fell 4.5% yesterday, with Mastercard (NYSE:MA) closing 3.8% down, after the Credit Card Competition Act was introduced to Congress. It follows President Trump's call on Friday to cap credit card interest at 10% for a year.

MA's Superscore of 80 in the Hidden Gems Primary database: The latest dip pushed the Mastercard share price down 6.1% in the past five trading days at yesterday's close, with Visa stock losing 8.3%.
"Populist politicians have long called for rate caps that average near 20% on $1T-plus on balances per Barrons": TMF Chief Investment Officer Andy Cross wrote Monday "Whether or not POTUS can implement this cap is debatable. I have doubts. But [it's] another reason to look at Klarna (NYSE:KLAR) and Sezzle (NASDAQ:SEZL) as they seek to serve credit needs to more Americans."

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3) Adobe Suffers as Apple Steps Up Competition

Adobe (NASDAQ:ADBE) fell 5.4% yesterday after fellow longtime Stock Advisor rec Apple (NASDAQ:AAPL) announced a new Apple Creator Studio subscription plan for its creative software offerings. The service will bundle Final Cut Pro, Logic Pro, and other apps -- including artificial intelligence (AI) features for Keynote, Pages, and Numbers -- and covers Mac and iPad. Launch in the App Store is set for Jan. 28, starting at $12.99 per month.

Adobe down 24% in 12 months: Apple's new approach raises a head-on challenge to Adobe's dominance in the professional creative apps market, with its subscription service covering Photoshop, Premier Pro, and Audition.
"A clear path from its massive user acquisition to accelerated revenue growth": Looking at Adobe's full-year results, Fool analyst Yasser El-Shimy pointed at what the company needs to show, as it's currently "pursuing a distribution-first, monetization-later strategy."

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4) Next Up: Q4 Bank Season Rolls On

Banking reporting season continues today with Bank of America (NYSE:BAC) posting a 7% year-over-year rise in Q4 revenue, with net interest income up 10% -- after the previous quarter saw growth in every major business. CEO Brian Moynihan spoke of improved returns "for both the full year and the quarter."

"Stronger growth in both our consumer and commercial businesses": Wells Fargo (NYSE:WFC) CEO Charlie Scharf revealed a new ROTCE (return on tangible common equity) target of 17%-18%, after the bank reported $5.36 billion net income today -- up 5.5% from the same quarter a year ago. It comes after Q3 saw loan balances increase 1.3% from Q2.
Record Q3 revenue with EPS up 48%: Citigroup (NYSE:C) is the third of the big banks reporting this morning, and it has an impressive Q3 to try to build on. While revenue in the quarter rose 9%, so did expenses -- so that will be something to watch.

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5) Your Take

Chewy (NYSE:CHWY), Coupang (NYSE:CPNG), and Etsy (NYSE:ETSY) are down between 45% and 55% since being recommended in Rule Breakers three to five years ago (although some later re-recommendations are faring better).

Which of these stocks has the best chance of recovering and beating the market over the next five years, and why? Debate with friends and family, or become a member to hear what your fellow Fools are saying!

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