Netflix (NFLX)

Q4 2025 Results

We have covered Netflix in the past. Some of these reports can be found here and here. For the last six months, Netflix has been involved in a contested takeover of Warner Brothers Discovery (WBD).

In recent months, the stock has been weak and has underperformed. Markets usually mark down the stock of an acquirer, especially in a contested bid, as there is well-founded fear that the buyer may overpay for the acquisition. Stock markets also fear dilution if some part of the acquisition will be funded with new stock. The price decline may also have reflected worries about growing competition and worries about the performance of the underlying business.

The Q4 results are a good opportunity to see the performance of the existing business.

Q4 Results