Netflix Inc. (NASDAQ:NFLX) shares soared nearly 9% in overnight trading on Thursday as the streaming giant officially declined to raise its offer for Warner Bros. Discovery (NASDAQ:WBD).

Financial Discipline Over M&A

Prominent investor Gary Black, Managing Partner of The Future Fund, praised the retreat, stating the move is the “best move for $NFLX shareholders.” Black noted that by avoiding a costly bidding war, the company preserves its balance sheet while maintaining its strategic path.

The market is now looking toward a full recovery of the stock's recent losses. Before the initial Dec. 5 bid for WBD, Netflix was trading near the $100 mark. Following Thursday's close of $84.59, the shift back to fundamental growth represents a significant opportunity.

“We believe… NFLX stock can return to the ~$100/share level,” Black noted, representing an 18% upside from Thursday's closing price. Investors responded immediately to the news, sending shares up to $92.77 in extended trading as the market embraced Netflix’s strategy.

$NFLX +10% AH to $92/share after saying it won't raise its offer for $WBC. We believe this is the best move for $NFLX shareholders and with the $2.8B termination fee for new ...