12:20 PM EST, 01/21/2026 (MT Newswires) -- Netflix ( NFLX )' (NFLX) decision to suspend share repurchases will likely weigh on its earnings per share, though the streaming giant's long-term prospects remain positive, Oppenheimer said in a note emailed Wednesday.

The streamer said Tuesday that it will pause share buybacks to conserve cash to fund its proposed acquisition of Warner Bros. Discovery's ( WBD ) studio and streaming assets.

Netflix ( NFLX ) told shareholders in a letter that it prioritizes reinvestment in the business, both organically and through "selective" merger and acquisition, over shareholder returns.

Oppenheimer lowered its 2026 and 2027 GAAP earnings per-share estimates for Netflix ( NFLX ) by 3% and 4%, respectively, taking into account the suspension of share repurchases. However, the brokerage kept its revenue projections intact.

Oppenheimer lowered its price target on Netflix's ( NFLX ) shares to $125 from $145, while reiterating its outperform rating, citing a "continued positive long-term outlook."

Netflix's ( NFLX ) shares were down 4.5% intraday Wednesday.

The company on Tuesday reported stronger-than-expected fourth-quarter results, though its first-quarter outlook fell short of Wall Street's estimates.

"We acknowledge lack of catalysts before (the Warner Bros. deal) closes," Oppenheimer analyst Jason Helfstein wrote in the note.

Netflix ( NFLX ) has switched to an all-cash offer for its Warner Bros. bid, compared with last month's proposed cash-and-stock structure. The amended offer came amid Paramount Skydance's ( PSKY ) hostile takeover attempt for the entire of Warner Bros.

Price: 83.14, Change: -3.91, Percent Change: -4.49