Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares fell more than 5% in after-hours trading on Tuesday, wiping $19 billion off the company's market value, after the streaming giant issued a weaker-than-expected forecast for the first quarter. The stock looks set to extend losses when markets open in New York.
Netflix is upgraded to a "Buy" after a sharp ~30% decline from peaks eliminates prior valuation concerns, despite Q1 guidance modestly missing consensus. NFLX's $72 billion all-cash offer for Warner Bros. would push leverage to ~5x EBITDA, but bridge funding is secured and synergies are expected. Access to Warner's studios should enable NFLX to streamline costs, produce more originals in-house, and enhance long-term profitability.
Netflix's revenue growth rate accelerated in Q4. The company's paid subscriber count recently crossed 325 million.
Netflix, Inc. (NFLX) Q4 2025 Earnings Call Transcript
As YouTube, TikTok, and Instagram continue to dominate mobile viewing, Netflix is rethinking how its app fits into a social-first video landscape. During its fourth-quarter earnings call on Tuesday, the company announced plans to revamp its mobile app and expand its short-form video feature, which it mentions could help promote the new slate of original video podcasts it unveiled last week.
Netflix, Inc. is rated Buy due to robust growth prospects, margin expansion potential, and an attractive valuation after a 37% pullback. NFLX delivered strong Q4 results, with 16% revenue growth, 29.5% operating margin, and rapid ad revenue acceleration, supported by AI-driven enhancements. Guidance for 2026 targets 12–14% revenue growth, a 31.5% operating margin, and continued double-digit top-line expansion via new verticals and content efficiency.
Netflix's senior management team continued to campaign Tuesday for their pending $82.7 billion acquisition of Warner Bros., billing it as a “tremendous opportunity.
There's a good chance Netflix stock isn't done sliding.
The company forecast annual revenue for 2026 modestly ahead of analyst expectations, even as Netflix surpassed 325 million subscribers globally.
Netflix beats quarterly expectations amid fight to acquire Warner Bros. Discovery, suggesting it's in a position of strength, not necessity.
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares fell almost 4% after Tuesday's closing bell as the streaming giant's guidance disappointed. For Q1, Netflix projected revenue of $12.16 billion, a 15.3% year-over-year increase.