Key Stats for Netflix Stock
- Price Change for Netflix stock: -7%
- $NFLX Share Price as of Jan. 20: $87
- 52-Week High: $134
- $NFLX Stock Price Target: $123
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What Happened?
Netflix (NFLX) stock is getting hammered today, dropping over 7% in pre-market trading despite reporting a solid earnings beat and announcing it reached 325 million global subscribers for the first time.
The streaming giant posted fourth-quarter earnings of $0.56 per share on revenue of $12.05 billion, both narrowly beating Wall Street expectations.
- Revenue grew 18% year over year, driven by subscriber growth, price increases, and stronger advertising revenue.
- The company’s ad business more than doubled in 2025, hitting $1.5 billion in revenue.
- For 2026, Netflix expects total revenue between $50.7 billion and $51.7 billion, with ad revenue projected to roughly double again.
So why is Netflix stock falling despite these strong results? The market is comparing the numbers to an internal memo leaked in April that outlined much more aggressive long-term financial targets.
By those ambitious standards, Netflix’s growth looks underwhelming. Co-CEO Greg Peters clarified that those targets were “long-term aspirations,” not near-term forecasts.
The other major headwind is the company’s controversial $72 billion acquisition of Warner Bros. Discovery’s streaming and studio assets.
Netflix stock has dropped nearly 30% since October, when acquisition rumors first surfaced. Today, Netflix amended its offer to all-cash and announced it would pause share buybacks to fund the deal.
The acquisition faces regulatory scrutiny and a competing hostile bid from Paramount Skydance, adding to investor uncertainty.
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What the Market Is Telling Us About Netflix Stock
The market’s reaction suggests investors are more concerned about Netflix’s uncertain acquisition strategy and softer growth outlook than impressed by the solid quarterly results.
Netflix stock has now fallen more than 30% from its 52-week high, putting it in technical “bear market” territory.
Co-CEO Ted Sarandos defended the Warner Bros. deal during the earnings call, saying it would “accelerate our business strategy” by combining HBO Max’s brand with Warner Bros.’ century of intellectual property.
He argued the deal is “pro-consumer, pro-innovation, pro-worker” and expressed confidence in securing regulatory approval.
Still, investors remain skeptical. The acquisition marks a dramatic shift for Netflix, which has historically avoided major M&A deals and industry consolidation.
Adding to the uncertainty, Netflix faces intense competition across streaming, traditional TV, and even social media platforms like YouTube, which the company cited as a major rival for viewer attention.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
