Reasons for Netflix Stock Plummeting in After-Hours Trading

Netflix had some big news to share in its latest financial report, but investors seem less than thrilled. The company exceeded expectations for the fourth quarter of 2025, but its stock took a hit in after-hours trading. What’s going on?

After regular trading hours today, Netflix’s stock dropped even more, leaving investors feeling disappointed. The streaming giant revealed strong financial results for the last quarter of 2025, so why the negative reaction?

In its shareholder letter, Netflix announced that it would pause its share buyback program to focus on building up its cash reserves. This decision comes as the company prepares for its acquisition of Warner Bros. Discovery. Today, Netflix also updated the terms of the agreement with Warner Bros. Discovery, opting for an all-cash deal valued at $27.75 per Warner Bros. share, unlike the original combination of cash and Netflix stock.

Netflix reported revenue of $12.05 billion for Q4 2025, exceeding analyst predictions of $11.97 billion. The company’s earnings per share (EPS) for the same quarter were $0.56, slightly higher than the expected $0.55. Looking ahead, management anticipates revenue between $50.7 billion and $51.7 billion for 2026, showing a growth rate of 12% to 14%.

While some investors may be unhappy about the temporary halt in the share buyback program, it’s crucial to acknowledge Netflix’s solid performance in Q4 2025 and the growth prospects for the upcoming year. With Netflix’s stock trading at a discount compared to historical levels, now might be a good time to consider adding it to your investment portfolio. Time to hit the buy button?