Ten large-cap stocks were top performers during the week of Feb. 23-27, 2026. Circle Internet Group led with a 34.99% gain after strong Q4 results. Netflix, Dell, IonQ, Keysight, and Axon Enterprise also posted significant gains (22-27%) driven by better-than-expected earnings and positive guidance. Other gainers included Paramount Skydance, Block, Thomson Reuters, and First Majestic Silver.

Netflix may have benefited from losing the bidding war for Warner Bros Discovery assets to Paramount Skydance, as acquiring WBD would not have solved Netflix's core business challenges. Despite the loss, Netflix shares rallied as investors recognized the company should focus on addressing its fundamental issues rather than pursuing major acquisitions.

Retail investors focused on five major stocks this week: Nvidia reported record $68.1B revenue but stock plunged 8.5% amid lukewarm investor reaction; Netflix declined to raise its WBD acquisition offer and may receive a $2.8B termination fee; AMD signed a blockbuster $60B deal with Meta to supply AI GPUs; Palantir announced strategic partnerships with GE Aerospace and Rackspace; Salesforce delivered record results with strong AI momentum but cautious FY27 guidance.

Netflix withdrew its bid for Warner Bros. Discovery, allowing Paramount Skydance to acquire the company for $111 billion. Netflix stock surged 14% on the news, and the company will receive a $2.8 billion termination fee. The article argues the deal was strategically flawed due to unclear rationale, Warner Bros.' heavy debt burden, poor history of media mergers, antitrust concerns, and Netflix's dominant market position without needing the acquisition.

Multiple major M&A activities and bankruptcies dominate the market: Funko surges 25% after investor urges sale exploration; Caesars Entertainment weighs takeover offers including from billionaire Tilman Fertitta; Netflix loses Warner Bros. bidding war to Paramount Skydance's $111B offer; GSK acquires 35Pharma for $950M; and iPic Theaters files for Chapter 11 bankruptcy.

U.S. stock futures fell on Friday ahead of January's producer price index data release. Major indices showed mixed performance with the Dow down 0.32%, S&P 500 down 0.13%, and Nasdaq 100 down 0.02%. Notable movers included Block surging 22.28% after in-line earnings and workforce reduction plans, Dell jumping 12.64% on better-than-expected results, while Zscaler tumbled 8.62% after cutting FY26 guidance. Netflix rose in premarket after exiting a bidding war.

Wall Street experienced a sharp selloff on Friday driven by AI-related economic disruption concerns and hotter-than-expected producer price data. Major indices declined with the Dow falling 1.3% and Russell 2000 dropping 2.1%. Financial stocks and private equity firms led the losses, while Netflix rallied 12% after withdrawing from a bidding war for Warner Bros. Discovery.

Despite Nvidia delivering strong earnings with a beat and raise, the market sold off as investors shifted focus from pricing power to pricing permanence. The market is now questioning how long AI-driven growth can sustain as hyperscaler capex growth is expected to decelerate and supply constraints may ease in 2027. Capital is rotating away from crowded US mega-cap growth toward asset-heavy balance sheets and non-US exposure. The Korean stock market surged due to memory chip demand, but faces cyclical risks if AI investment slows.

Paramount Skydance (PSKY) has won the bidding war for Warner Bros. Discovery (WBD) after Netflix withdrew from the competition. Despite securing the deal with a $31 per share cash offer and $7 billion termination fee, PSKY's stock remains under pressure, down 15.17% year-to-date. However, the stock's Benzinga Edge value score has climbed to the 88.93rd percentile, suggesting it is increasingly underpriced relative to its fundamental value.

Film critic Sean Fennessey warns that Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery is a disaster in the making, citing Hollywood's poor track record with studio mergers and concerns about David Ellison's control over CNN, HBO, and CBS. Netflix walked away from its bid but may have won the long-term strategic battle. The deal faces regulatory review with a Senate hearing scheduled for March 4.

Netflix declined to raise its offer for Warner Bros. Discovery after Paramount Skydance made a superior bid of $31 per share. The decision was praised by investor Gary Black as financially prudent, allowing Netflix to preserve its balance sheet and receive a $2.8 billion termination fee. Netflix shares surged 9% on the news, with Black projecting 18% upside potential as the stock returns to fundamental growth.

Sen. Elizabeth Warren accused the Trump administration of corrupting the Netflix-Warner Bros. Discovery merger process to favor the Ellison family's Paramount Skydance bid. Netflix announced it would not raise its $27.75 per share offer after Warner Bros. deemed Paramount Skydance's $31 per share proposal superior. Warren criticized the process as potential 'crony capitalism' following reports of White House meetings with Netflix co-CEO Ted Sarandos.