Core Viewpoint - Investors are skeptical about Netflix's attempt to acquire Warner Bros. Discovery's studio and streaming businesses, showing dissatisfaction with the company's guidance for 2026 [1] Group 1 - Netflix's acquisition efforts for Warner Bros. Discovery's assets have not convinced investors [1] - The company's 2026 guidance has led to discontent among investors [1]

Core Insights - Netflix Inc is a leading streaming service provider, competing with major players like Amazon Prime Video, Disney+, and Hulu [1] - UBS set a price target of $95 for Netflix, indicating an expected increase of 8.87% from its trading price of $87.26 [1][6] Financial Performance - Netflix anticipates generating $12.16 billion in revenue for the current quarter, a 15.3% year-on-year increase, but below Wall Street's forecast of $12.18 billion [3] - The company projects an EPS of $0.76 for the current quarter, which is below the anticipated $0.81 [3] - For the fourth quarter, Netflix reported revenue of $12.05 billion, a 17.6% increase, and an EPS of $0.56, slightly exceeding consensus estimates [4] - For the full year, Netflix achieved $45.2 billion in revenue, reflecting a 16% increase, with an EPS of $2.53 [5] Market Reaction - Netflix's stock recently experienced a significant decline, dropping over 5% in after-hours trading, leading to a $19 billion reduction in market value [2][6] - The stock price is currently at $87.26, with a market capitalization of approximately $398.73 billion [5]

Core Insights - Netflix reported fourth-quarter 2025 earnings of 56 cents per share, exceeding the Zacks Consensus Estimate by 1.82% and marking a 30.2% increase from the previous year [1] - Revenues rose 18% year over year to $12.05 billion, driven by membership growth, higher subscription pricing, and increased advertising revenues, surpassing the consensus mark by 0.67% [1][2] Financial Performance - Operating income reached $2.96 billion, up 30% year over year, with an operating margin of 24.5%, reflecting a two percentage point increase [3] - Net income included approximately $60 million in costs related to a bridge loan associated with the Warner Bros. acquisition [4] - Marketing expenses were $1.11 billion, technology and development expenses totaled $890.3 million, and general and administration expenses reached $567.8 million [5] Membership and Engagement - Netflix surpassed 325 million paid memberships, with significant engagement as members watched 96 billion hours in the second half of 2025, a 2% increase year over year [6][9] - The final season of "Stranger Things" generated 120 million views, contributing to high engagement levels [7] Content Performance - Successful fourth-quarter releases included "Emily in Paris" S5 (41 million views) and "Nobody Wants This" S2 (31 million views) [8][10] - Live events, such as Anthony Joshua's fight, generated significant audience engagement, with a 33 million average minute audience [13] Advertising Growth - Advertising revenues exceeded $1.5 billion in 2025, more than doubling year over year, as Netflix enhanced its advertising technology capabilities [15][16] - Partnerships with Spotify and iHeartMedia were announced to expand content offerings [17] Balance Sheet and Cash Flow - As of December 31, 2025, Netflix had cash and cash equivalents of $9.03 billion and total debt of $14.46 billion [18] - Non-GAAP free cash flow for the fourth quarter was $1.87 billion, compared to $1.38 billion in the prior year [18] Acquisition Update - Netflix announced plans to acquire Warner Bros. Discovery for an all-cash transaction valued at $27.75 per share, expected to enhance its content library and subscription options [21][22][23] - The company will pause share buybacks to accumulate cash for the acquisition while maintaining a solid investment-grade rating [24] Future Outlook - For Q1 2026, Netflix expects revenues of $12.16 billion, indicating a 15.3% year-over-year growth [25] - Full-year 2026 revenue is projected between $50.7 billion and $51.7 billion, representing 12% to 14% growth, driven by membership increases and a projected doubling of ad revenues [26][28]

Core Viewpoint - Netflix's stock performance is under scrutiny due to its recent acquisition bid for Warner Bros. Despite reporting better-than-expected Q4 results, the company's guidance for Q1 2026 fell short of market expectations, leading to a decline in share price [1][3][17] Financial Performance - In Q4, Netflix reported revenues of $12.05 billion, exceeding the consensus estimate of $11.97 billion, with a year-over-year growth rate of 17.6% [7] - Operating margins improved to 24.5% from 22.2% year-over-year, and earnings per share (EPS) increased by 30.2% to $0.56, slightly above the consensus estimate of $0.55 [7] - Net cash from operating activities reached $2.11 billion, a 37.4% increase year-over-year, while free cash flow surged by 35.8% to $1.87 billion [8] Market Position and Strategy - Netflix holds a market cap of $372.8 billion and has seen its stock price remain flat over the past year, primarily due to skepticism surrounding its acquisition of Warner Bros. [3] - The company is the leading subscription video-on-demand platform with over 325 million subscribers, significantly ahead of competitors like Amazon Prime and Disney+ [11] - Netflix aims to double its advertising revenue between 2025 and 2026, focusing on live events and AI-driven advertising tools to enhance user engagement and reduce churn rates [12][13] Acquisition of Warner Bros. - Netflix has made an all-cash offer for Warner Bros., differentiating itself from Paramount's bid for the entire company, which includes global linear networks [5][6] - The acquisition is seen as a way to enhance Netflix's content library and strengthen its position in the entertainment landscape, although it raises concerns about increased leverage [15] Analyst Sentiment - Analysts maintain a consensus rating of "Moderate Buy" for Netflix, with a mean target price of $124.58, indicating a potential upside of about 43% from current levels [17]

Corporate Performance - Netflix (NFLX) stock declined after quarterly results failed to impress investors, indicating a potential shift in market sentiment towards earnings reports [5] - S&P 500 companies are experiencing the worst share-price reactions on record despite earnings beats, suggesting a challenging environment for corporate performance [5] Market Reactions - US stocks rebounded on Wednesday following a significant selloff, with the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 each increasing by over 1% [1] - The dollar strengthened against the euro, reflecting market reactions to President Trump's comments on Greenland and ongoing trade tensions [3]

Core Viewpoint - Netflix has experienced a series of price target cuts from major Wall Street analysts following its latest earnings report, primarily due to concerns over rising content costs, weak forward guidance, and uncertainty regarding a potential Warner Bros transaction [1][3][12]. Price Target Adjustments - Goldman Sachs reduced its price target from $112 to $100 while maintaining a 'Neutral' rating, citing strong momentum in Netflix's advertising-supported tier and robust free cash flow generation, but emphasized the need for clarity on any Warner deals [3][4]. - Morgan Stanley lowered its target from $120 to $110, reiterating an 'Overweight' rating, suggesting that much of the Warner-related risk is already reflected in the stock price [4]. - UBS made a more significant cut from $150 to $130 but kept a 'Buy' rating, noting Netflix's acceleration in investment for long-term growth [4]. - BMO Capital Markets reduced its forecast from $143 to $135 while maintaining an 'Outperform' rating, primarily due to disappointing 2026 guidance [5]. - Guggenheim lowered its expected figure from $145 to $130 with a 'Buy' rating, indicating that strong Q4 results were offset by softer engagement trends and a weaker profit outlook [6]. - Canaccord Genuity cut its target from $152 to $125 but maintained a 'Buy' rating, citing increased content investment as a limiting factor for margin expansion [7]. - TD Cowen made a modest cut from $115 to $112, still calling the stock a 'Buy' and describing Q4 results as a modest beat [8]. - Piper Sandler made the most drastic cut from $140 to $103, highlighting strong execution in Q4 but concerns over content reinvestment and deal-related issues [9]. - Wolfe Research reduced its target from $121 to $95 while keeping an 'Outperform' rating, warning that revenue growth comes with higher costs [9]. - Rosenblatt cut its price target to $94 from $105, reiterating a Neutral rating due to a subscriber outlook slightly below expectations [10]. - KeyBanc Capital Markets slightly nudged its target down from $110 to $108, maintaining an 'Overweight' rating but warning of near-term challenges [11]. Market Sentiment - Despite the price target cuts, the average price target for Netflix over the next 12 months is $117.06, indicating a nearly 39% upside potential according to 39 analyses on the market analysis platform TipRanks [12]. - This suggests that the overall market sentiment remains positive towards Netflix, viewing the cited concerns as short-term rather than long-term challenges [13].

Core Insights - Netflix reported fourth-quarter earnings per share of 56 cents, slightly above the consensus estimate of 55 cents, and revenue of $12.05 billion, exceeding the expected $11.97 billion [1] - For the first quarter, Netflix anticipates earnings per share of 76 cents and revenue of approximately $12.16 billion, with expectations for continued advertising revenue growth and investments in content and new formats [2] Financial Performance - The company’s fourth-quarter revenue was $12.05 billion, surpassing estimates, while earnings per share were 56 cents, also beating expectations [1] - Netflix's guidance for the first quarter includes earnings per share of 76 cents and revenue of around $12.16 billion [2] Membership and Audience Reach - Netflix has over 325 million paid memberships, serving an audience nearing one billion globally, with a focus on providing a diverse range of series, films, and games [3] Stock Performance and Analyst Ratings - Following the earnings announcement, Netflix shares fell approximately 3.3% to $84.34 [3] - Analysts have adjusted their price targets for Netflix, with several maintaining their ratings but lowering targets, such as Pivotal Research from $105 to $95 and Goldman Sachs from $112 to $100 [4] - Other notable adjustments include Needham lowering from $150 to $120 and Guggenheim from $145 to $130, while Morgan Stanley maintained an Overweight rating with a target reduction from $120 to $110 [4]

Core Viewpoint - Netflix reported mixed financial results for the fourth quarter, with earnings per share slightly above estimates but first-quarter guidance falling short, leading to a decline in share price [1][2]. Financial Performance - Netflix's earnings per share for the fourth quarter were 56 cents, surpassing the consensus estimate of 55 cents [1]. - The company generated revenue of $12.05 billion, exceeding the consensus estimate of $11.97 billion [1]. First Quarter Guidance - For the first quarter, Netflix anticipates earnings per share of 76 cents and revenue of approximately $12.16 billion [2]. - The company expects continued growth in advertising revenue and plans to invest in content, advertising initiatives, and new formats such as live events, video podcasts, and games [2]. Membership and Audience - Netflix has over 325 million paid memberships, serving an audience approaching one billion people globally [3]. Stock Performance and Analyst Ratings - Following the earnings announcement, Netflix shares fell 3.3% to trade at $84.34 [3]. - Analysts have adjusted their price targets for Netflix, with several maintaining their ratings but lowering targets significantly: - Pivotal Research: Hold, target lowered from $105 to $95 [4]. - Goldman Sachs: Neutral, target lowered from $112 to $100 [4]. - Needham: Buy, target lowered from $150 to $120 [4]. - Rosenblatt: Neutral, target lowered from $105 to $94 [4]. - Guggenheim: Buy, target lowered from $145 to $130 [4]. - Morgan Stanley: Overweight, target lowered from $120 to $110 [4]. - BMO Capital: Outperform, target lowered from $143 to $135 [4]. - Canaccord Genuity: Buy, target lowered from $152.5 to $125 [4]. - Keybanc: Overweight, target lowered from $110 to $108 [4]. - UBS: Buy, target lowered from $150 to $130 [4].

Shares of Netflix Inc (NASDAQ:NFLX) are 6% lower to trade at $82.01 at last glance, brushing off a fourth-quarter earnings and revenue beat after the streaming giant also issued a disappointing margin outlook. Concerns around the company's bid to acquire Warner Bros Discovery (WBD) for roughly $83 billion weighed as well.No fewer than eight analysts have slashed their price targets in response, including HSBC to $106 from $107. Analysts remain optimistic toward NFLX, however, with 27 of the 42 in question s ...

Netflix Inc (NASDAQ:NFLX) is pushing back against a broader bear case that critics say points to weakening fundamentals. Management, however, argues the problem isn't the business, but the metrics being used to judge it. On its fourth quarter earnings call, Netflix executives said surface-level data points like total viewing hours are being overemphasized, while the indicators that actually matter to long-term value creation are being ignored.Track NFLX stock here.Concerns have centered on flat or slowing t ...