BUY, SELL, HOLD (2)

Foreign-Made Movie Tariffs Weigh on 3 Entertainment Stocks

NFLX is falling from last session's record highs

Digital Content Manager
May 5, 2025 at 10:56 AM
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President Donald Trump revealed over the weekend he allowed government agencies to impose a 100% levy on movies made outside of the U.S., which would significantly raise costs for entertainment companies. In response, shares of Netflix Inc (NASDAQ:NFLX), Walt Disney Co (NYSE:DIS), and Warner Bros Discovery Inc (NASDAQ:WBD) are moving lower today.

NFLX was last seen down 2% to trade at $1,132.96, on track to snap its impressive 11-day win streak that culminated in a May 2, record peak of $1,159.44. Shares also broke above recent pressure at the $1,000 level, which rejected its March rally, and sport a 95.1% year-over-year lead.

DIS is 0.3% lower at at $92.19 at last glance, looking to extend its 17.3% year-to-date deficit. The stock is eyeing its third loss in the last four sessions, and has remained well below the $96 since a bear gap last month pushed it to an April 7, 52-week low of $80.10.

WBD is down 1% at $8.46 at last check, as it continues to struggle with resistance at the $9 level. The shares have only modestly distanced themselves from their April lows, and have already shed 20.3% in 2025.

Options bears are blasting NFLX and WBD, with put volume running at double the intraday average volume. For the former, the most active contract is the weekly 5/9 1,100-strike put, and for the latter it's the weekly 5/9 9-strike call, with new positions being opened at both.

 

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