Netflix stock whipsaws, Ulta & Victoria’s Secret earnings

Yahoo Finance Video and Julie Hyman

December 6, 2025

In this video:

•                                       StockStory Top Pick 
  

  NFLX

  +2.17%

 VSCO  

 +4.96%  

 

 

 WBD  

 +0.77%  

 

 

 ULTA  

 -1.43%  

Netflix (NFLX) stock whipsaws as investors digest the streaming giant’s deal with Warner Bros. (WBD).

Yahoo Finance Senior Reporter Brooke DiPalma joins Morning Brief host Julie Hyman to take a closer look at the company’s stock moves. Brooke and Julie also take a look at two other trending tickers: Ulta (ULTA) and Victoria’s Secret (VSCO).

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

we are watching Netflix, Ulta and Victoria’s Secret. First up is Netflix. The stock has been whipsawed after winning a bid to buy the studio and streaming assets of Warner Brothers for $72 billion.

00:11 Speaker A

Joining us for more, Yahoo Finance’s Brooke DiPalma. It’s been an interesting journey for the stock today.

00:16 Brooke DiPalma

What a journey.

00:17 Speaker A

It started lower, then it briefly spiked higher after a report that there would be regulatory challenges. Maybe there was some relief because people don’t want them to actually do this.

00:26 Brooke DiPalma

They’re not, this is not actually going to happen.

00:28 Speaker A

And then it went back down.

00:29 Brooke DiPalma

Yeah. And now we’re starting to get the rhetoric from the street. Analysts really saying uh, Laura Martin over at Needham, she has a buy rating on the stock. And she pointed out a few things that strategically, this would mean that Netflix will be the kingmaker in Hollywood, she said in her note. She also went on to say that this sort of positions Netflix to be able to compete with Google’s YouTube. Keep in mind, Google does own a YouTube business. I feel like some people, some people often forget that. Also Amazon’s Prime video. So really this positions Netflix in her note, she says to really go up against big tech. And Netflix sort of hasn’t really been in that space as of late. They haven’t been able to compete with these big mega players. This would put HBO Max underneath their umbrella and really sort of build out their robust. And she sort of said here that the valuation might be one concern on the street, perhaps that’s sending the stock lower today, but she said that she believes that Netflix overpaid only if viewed in a one to three-year time frame. But when you think about Netflix over the next two decades, the valuation here makes sense.

01:21 Speaker A

Yeah, so interesting and we’ll see how it plays out in the coming days because it’s not done.

01:26 Brooke DiPalma

Yeah, truly a this would be a historical transformation in streaming as well.

01:30 Speaker A

Definitely.

01:31 Speaker A

Um next up is Ulta. The beauty retailer seeing its biggest jump since May after boosting its forecast. Um the shares right now are up by 14%. Ulta

01:40 Speaker A

um, you know, you you’ve been following the retailers so closely and it’s been so interesting the disconnect between the haves and the have nots in a way and Ulta, Ulta’s been doing well.

01:52 Brooke DiPalma

Yeah, Ulta has been doing well because as we’ve talked about, I feel like over and over again, value continues to do well. People are ultimately looking for the best deal. and executives saying on the call this uh this or this week that they know that they’re up against this challenging macro backdrop and so they’re doing everything they can especially around this holiday season to continue to push their their focus on value up against consumers as they really are mindful of their budgets heading into the holiday season. and Telsey advisory group saying that while macro visibility remains somewhat difficult in the near term, they’re really confident about the momentum and relevance that Ulta’s able to bring year to date.

02:35 Brooke DiPalma

Of course, we know that the company has made many strategic changes over the past month, or rather year, including that change to get out of Target. And so it’s just been really interesting to see the way that this company has repositioned itself and really ultimately gained optimism across the street this year so far.

02:51 Speaker A

Yeah. Um, and finally let’s stick with retail and talk about Victoria’s Secret because that retailer posted better than expected third quarter results. It boosted guidance. Those shares are up by about 12% right now.

03:04 Brooke DiPalma

Yeah, and if you look year to date, the stock is up about 14%. over the past year up 10%, but keep in mind, over the past five years, this stock has severely underperformed. It’s down about 14%. This company really trying to figure out how to revitalize itself and it seems like it’s starting to pick up some progress there and that’s what has the street excited.

03:22 Brooke DiPalma

They raised their outlook for 2025 net sales, operating income, earnings guidance. Also keep in mind something that we went into the year thinking about is how these retailers would position themselves against tariffs and that turned out that it wasn’t as bad or it’s better than feared. And so Victoria’s Secret said that the now estimated tariff impact would be about 90 million for the year. We went into the year thinking that it would be 100 million. And so this company definitely performing better than expectations.

03:52 Speaker A

Yeah, definitely. and you can see that obviously in the stock. Thanks a lot Brooke.

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