Stock Market Today, Jan. 22: Netflix Drops as Guidance Tempers Strong Q4 Results

Core Viewpoint - Netflix's stock declined by 2.13% to $83.54 as investors reacted to strong Q4 2025 earnings overshadowed by cautious guidance for 2026 and uncertainties surrounding the Warner Bros. Discovery deal [1][5]. Financial Performance - Netflix reported a revenue increase of 18% year over year, reaching over 325 million paid subscribers [4]. Market Activity - Trading volume for Netflix reached 67 million shares, which is approximately 46% above its three-month average of 46 million shares [2]. Competitive Landscape - In the media and entertainment sector, peers showed mixed performance, with Walt Disney closing at $113.21 (+0.09%) and Comcast finishing at $29.23 (+1.18%) [3]. Future Outlook - The company provided cautious guidance for 2026, raising concerns about the potential acquisition of Warner Bros. Discovery and the associated debt implications on future cash flows [5].