You can't watch the World Cup on Netflix, but that hasn't stopped the video streamer from trying to capitalize on the international soccer tournament, which runs through July 19.
Users can watch The Rest Is Football, a daily video podcast hosted by former England striker and BBC anchor Gary Lineker, or play the videogame FIFA World Cup: Launch Edition.
Those are part of a broader strategy. Expanding into podcasts and games is part of Netflix's plan to add subscribers and boost its bottom line now that it has cracked down on password sharing, rolled out ad-supported tiers, and hiked prices.
Wall Street isn't convinced. Shares have slumped 14% to just under $73 since Feb. 26, the day Netflix declined to match rival Paramount Skydance's $81 billion bid for Warner Bros. Discovery. That's surprising, because the stock had traded for months as though the deal was a bad thing.
Netflix probably did dodge a bullet, given that the takeover would have saddled it with more than $50 billion of new debt. But the saga also highlighted that the streamer is struggling to drive growth, and it has given investors very little to get excited about since the acquisition fell through.
Without a catalyst, shares could carry on tumbling. Bank of America technical analysts have warned the stock could drop as low as $50 if it doesn't find a floor soon.
"People are wondering what turns the ship here. ...There's not a clear view of what Netflix does next, and that's why the stock has struggled," Matthew Condon, a director of equity research at Citizens JMP who rates the stock at Market Perform, tells Barron's.
The biggest battle is keeping viewers glued to their screens. Alphabet's YouTube TV grew its share of U.S. streaming time to 28% from 25% over the two years through March 2026, per data from audience measurement company Nielsen. Netflix's share dropped to 17% from 21% over the same period.
The Street was right to give the Warner Bros. bid a thumbs down, but one silver lining would be Netflix gaining control of franchises like Harry Potter and Batman, which may have given those engagement numbers a much-needed boost.
"Netflix's share of streaming time is very stagnant," says Condon. "They don't have a ton of great intellectual property, which was the interesting thing about Warner Bros."
It'll be hard to shift the narrative.
Another smash-hit series could win back viewers, but finding the next Squid Game or Stranger Things is expected to hurt Netflix's profit margin. The streamer plans to spend 10% more on content in 2026.
Netflix could put the $2.8 billion breakup fee it netted when it dropped its bid for Warner toward another deal, but there aren't many takeover targets left as the entertainment industry consolidates.
Roku is probably off the table after the streaming device maker accepted a $22 billion offer from Fox earlier this month. Netflix has also denied speculation it would bid for Lionsgate, the studio behind franchises including The Hunger Games and John Wick.
Still, the company will probably have to either spend more on content or pursue another deal, because podcasts and videogames won't win over Wall Street.
"Barring an acquisition, I don't think there's a ton to move the needle beyond the core business," Morningstar analyst Matthew Dolgin tells Barron's.
"To get sentiment as bullish as it was before, they really need to show more acceleration." Dolgin rates Netflix two stars out of five, and estimates $80 would be a fair value for the stock.
Netflix's battered stock could do with a win, but podcasts like The Rest Is Football and videogames like FIFA World Cup won't move the goal posts. The streamer must find a catalyst quickly, before investors show it a red card.
Write to George Glover at george.glover@dowjones.com
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(END) Dow Jones Newswires
June 26, 2026 21:30 ET (01:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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