Netflix Earnings Put Focus Back on Basics as M&A Overhang Clears

Netflix Inc.’s stock struggled through the winter as the company engaged in a bidding war for Warner Bros. Discovery Inc. But since ending the chase two months ago, the company has gotten back to basics, a strategy welcomed by investors and that’s expected to be validated when it reports earnings after the close.

The streaming giant’s shares have gained about 28% since late February, when Netflix abandoned its pursuit of Warner Bros. The stock is one of the top 15 performers in the S&P 500 Index over that stretch, trading at the highest since December but still roughly 20% below the record set last June. Meanwhile, Paramount Skydance Corp. is up about 5% since it won the Warner Bros. battle, and Warner is down 5%.