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Netflix Stock Pops On Higher Revenue Outlook, $15B Buyback Boost
NFLXNetflix(NFLX) Investopedia·2025-01-21 22:15

Core Insights - Netflix reported fourth-quarter results that exceeded analysts' expectations, leading to a significant increase in share price [1] - The company experienced a 16% revenue growth, reaching 10.25billion,andearningsroseto10.25 billion, and earnings rose to 1.87 billion, or 4.27pershare,comparedto4.27 per share, compared to 937.8 million, or 2.11pershare,ayearprior[1]−Netflixended2024with302millionmemberships,adding19millionnetnewmembersinthefourthquarter[2]RevenueForecast−Forfiscal2025,Netflixraiseditsrevenueforecasttobetween2.11 per share, a year prior [1] - Netflix ended 2024 with 302 million memberships, adding 19 million net new members in the fourth quarter [2] Revenue Forecast - For fiscal 2025, Netflix raised its revenue forecast to between 43.5 billion and 44.5billion,whichis44.5 billion, which is 500 million higher than the previous estimate [2] - Analysts had anticipated a revenue of 43.65billionfor2025[2]ShareRepurchaseProgram−Thecompanyincreaseditssharerepurchaseprogramby43.65 billion for 2025 [2] Share Repurchase Program - The company increased its share repurchase program by 15 billion, bringing the total authorization to 17.1billion[3]−Inthepreviousyear,Netflixrepurchased9.9millionsharesfor17.1 billion [3] - In the previous year, Netflix repurchased 9.9 million shares for 6.2 billion [3] Stock Performance - Following the earnings release, Netflix shares surged over 12% in after-hours trading and have risen nearly 80% over the past year [3]