{"id":66699,"date":"2026-01-21T04:44:57","date_gmt":"2026-01-21T04:44:57","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/netflix-stock-sinks-on-q4-earnings\/"},"modified":"2026-01-21T04:44:57","modified_gmt":"2026-01-21T04:44:57","slug":"netflix-stock-sinks-on-q4-earnings","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/netflix-stock-sinks-on-q4-earnings\/","title":{"rendered":"Netflix stock sinks on Q4 earnings"},"content":{"rendered":"<p><b>(Originally posted on : Invezz )<\/b><br \/>\n<\/p>\n<div>\n<p>Netflix (NASDAQ: NFLX) shares are trending down in after-hours after the streaming behemoth reported its financials for the fourth quarter that only slightly topped Street estimates.<\/p>\n<p>Investors are bailing on NFLX stock primarily because they expected more from the mass media giant given its perceived leadership position in streaming.<\/p>\n<p>In the absence of that, the uncertainty surrounding the company\u2019s $83 billion bid for Warner Bros. Discovery assets is taking the centre stage in after-hours.<\/p>\n<p>Including the initial post-earnings slide, Netflix stock is down some 38% versus its 52-week high.<\/p>\n<h2 id=\"is-it-worth-buying-netflix-stock-on-the-post-earnings-dip\" class=\"wp-block-heading\">Is it worth buying Netflix stock on the post-earnings dip?<\/h2>\n<p><a class=\"copy-link-to-section\" href=\"#\"><i class=\"fa fa-link\"\/><br \/>\n                <span class=\"tooltip\" data-text=\"Copy link to section\" data-conf=\"Copied!\">Copy link to section<\/span><br \/>\n            <\/a><\/p>\n<p>Netflix saw its revenue climb another 18% on a year-over-year basis to $12.05 billion in the fiscal Q4. Still, its per-share earnings at 56 cents came in a cent above analysts\u2019 expectations only.<\/p>\n<p>On the plus side, however, the Nasdaq-listed firm said it ended the quarter with 325 million global paid subscribers \u2013 about 24 million more than a year ago.<\/p>\n<p>Long-term investors should consider loading up on NFLX shares on the post-earnings decline also because the management guided for another 13% increase in revenue for 2026.<\/p>\n<p>This will be \u201cdriven by increases in both membership and pricing,\u201d it confirmed in the press release today.<\/p>\n<h2 id=\"nflx-shares-could-benefit-from-ad-tier-success\" class=\"wp-block-heading\">NFLX shares could benefit from ad tier success<\/h2>\n<p><a class=\"copy-link-to-section\" href=\"#\"><i class=\"fa fa-link\"\/><br \/>\n                <span class=\"tooltip\" data-text=\"Copy link to section\" data-conf=\"Copied!\">Copy link to section<\/span><br \/>\n            <\/a><\/p>\n<p>Netflix shares remain attractive beyond this near-term volatility also because the streaming giant is seeing massive success with its high-margin advertising tier.<\/p>\n<p>In 2026, the company sees its ad revenue \u201croughly doubling\u201d on a year-over-year basis, according to its <a href=\"https:\/\/s22.q4cdn.com\/959853165\/files\/doc_financials\/2025\/q4\/FINAL-Q4-25-Shareholder-Letter.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">letter to shareholders<\/a> on Jan. 20.<\/p>\n<p>According to Nielsen, the final season of \u201c<em>Stranger Things<\/em>\u201d resulted in a 10% increase in NFLX\u2019s monthly viewership in December.<\/p>\n<p>Netflix\u2019s focus on bringing more sports content to its online platform is helping reinforce its lead in the streaming space as well. The Los Gatos-headquartered firm streamed two National Football League games on Christmas.<\/p>\n<h2 id=\"wbd-deal-could-eventually-prove-a-tailwind-for-netflix\" class=\"wp-block-heading\">WBD deal could eventually prove a tailwind for Netflix<\/h2>\n<p><a class=\"copy-link-to-section\" href=\"#\"><i class=\"fa fa-link\"\/><br \/>\n                <span class=\"tooltip\" data-text=\"Copy link to section\" data-conf=\"Copied!\">Copy link to section<\/span><br \/>\n            <\/a><\/p>\n<p><a href=\"https:\/\/invezz.com\/news\/2026\/01\/20\/netflix-revises-warner-bros-discovery-takeover-to-all-cash-deal-wbd-board-approves\/\">Netflix went all-cash in its pursuit of WBD assets<\/a> on Tuesday, reiterating its commitment to bringing major entertainment franchises like \u201c<em>Game of Thrones<\/em>\u201d, \u201c<em>Harry Potter<\/em>\u201d, and DC movies (Batman, Superman etc.) to its viewers.<\/p>\n<p>\u201cOur revised all-cash agreement will enable an expedited timeline to a stockholder vote and offer greater financial certainty,\u201d Ted Sarandos \u2013 the co-chief executive of NFLX told investors today.<\/p>\n<p>According to him, the WBD deal will enable its subscribers to enjoy an even broader selection of high-quality quality movies and TV shows.<\/p>\n<p>Meanwhile, the addition of \u201cHBO Max\u201d will see Netflix Inc introduce more personalized, flexible subscription plans as well, Sarandos added.<\/p>\n<p>All in all, while this pending transaction has been an overhang on NFLX stock in recent weeks, it could actually prove a major tailwind if the management succeeds in closing it this year.<\/p>\n<p>Note that Wall Street remains bullish as ever on the streaming giant for the next 12 months. The consensus rating on Netflix sits at \u201coverweight\u201d currently with the mean target of about $125 signaling potential upside of 55% from here.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/invezz.com\/news\/2026\/01\/20\/netflix-stock-sinks-on-q4-earnings-creating-opportunity-for-long-term-investors\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Invezz ) Netflix (NASDAQ: NFLX) shares are trending down in after-hours after the streaming behemoth reported its financials for the fourth quarter that only slightly topped Street estimates. Investors are bailing on NFLX stock primarily because they expected more from the mass media giant given its perceived leadership position in streaming. [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":66700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/66699"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=66699"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/66699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/66700"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=66699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=66699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=66699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}