Netflix, Inc. (NASDAQ:NFLX) shares rose in premarket trading on Thursday after the company expanded its stock buyback plan and reinforced its growth outlook.According to an exchange filing, the streaming giant approved a fresh $25 billion repurchase authorization, adding to an earlier program announced in December 2024.The combined plan carries no expiration date and offers flexibility in execution.<h2>Share Repurchase Strategy Expands</h2>The board approved additional capital returns as management seeks to optimize shareholder value.The company still had about $6.8 billion remaining under its prior authorization at the end of March.Combining the new $25 billion, the total buyback could go as high as $32 billion, which amounts to about 8% of Netflix's total market cap. This tantamounts to a significant investment in its own stock.Netflix said it may conduct buybacks through open-market purchases or structured trading plans. It may also use privately negotiated deals, block trades or accelerated programs.The company emphasized it has no fixed obligation to repurchase shares.<h2>Warner Merger Failure</h2>The huge buyback comes after Netflix stepping away from a proposed acquisition of Warner Bros. Discovery (NASDAQ:WBD) assets.The move underscores Netflix's continued emphasis on organic growth.After the merger was dropped, Bank of America Securities analyst Jessica Reif Ehrlich maintained a Buy rating on Netflix, adding that Netflix still has meaningful expansion potential.The platform remains less than 50% penetrated across global connected TV households, leaving room for subscriber growth in both mature and emerging markets.<h2>First-Quarter Performance</h2>Earlier this month, Netflix posted first-quarter revenue of $12.25 billion, exceeding Wall Street projections. Adjusted earnings came in at $1.23 per share, surpassing analyst expectations.Revenue climbed 16% from the previous year, supported by subscriber gains, pricing adjustments and advertising growth. The company noted that membership expansion drove results beyond internal forecasts.<h2>Outlook Signals Near-Term Cost Pressure</h2>Netflix expects second-quarter revenue to reach $12.57 billion, alongside projected earnings of 78 cents per share. The company flagged rising content amortization as a near-term headwind.&#34;We expect Q2 to have the highest year-over-year content amortization growth rate in 2026, before decelerating to mid-to-high single-digit growth in the second half of the year,&#34; the company said.Netflix reaffirmed its full-year revenue outlook of $50.7 billion to $51.7 billion. The guidance reflects confidence in sustained user growth and monetization improvements.<h2>Analyst Consensus &amp; Recent Actions</h2>The stock carries a Buy rating with an average price target of $114.15. Recent analyst moves include:<ul><li>Piper Sandler: Overweight (Raises target to $115.00) (April 17)</li><li>Oppenheimer: Outperform (Lowers target to $120.00) (April 17)</li><li>Barclays: Equal-weight (Lowers target to $110.00) (April 17)</li></ul><h3>Top ETF Exposure</h3><ul><li>The Communication Services Select Sector SPDR Fund (NYSE:XLC): 5.71% weight</li><li>First Trust Dow Jones Internet Index Fund (NYSE:FDN): ~9% weight</li></ul>Significance: Because Netflix holds meaningful weight in these ETFs, fund flows can influence buying or selling activity in the stock.NFLX Price Action: Netflix shares were up 1.33% at $94.48 during premarket trading on Thursday, according to Benzinga Pro data.Image via Shutterstock

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Netflix, Inc. has expanded its stock buyback plan by approving a $25 billion repurchase authorization, raising the total potential buyback to $32 billion. This decision follows strong Q1 earnings, with revenue of $12.25 billion and adjusted earnings of $1.23 per share, exceeding expectations. Despite stepping away from a merger with Warner Bros. Discovery, Netflix maintains a positive growth outlook, projecting Q2 revenue of $12.57 billion. Analysts continue to rate the stock as a Buy, with an average price target of $114.15. Shares rose 1.33% in premarket trading.

- Netflix, Inc. announced a new $25 billion stock buyback plan, increasing its total repurchase capacity to $32 billion, which represents approximately 8% of its market cap.  
- This decision follows the company's withdrawal from acquiring Warner Bros. Discovery assets and highlights its focus on organic growth, supported by positive first-quarter financial results.  
- Analysts maintain a Buy rating on Netflix, projecting revenue of $12.57 billion for Q2 2026, despite anticipated near-term cost pressures from rising content amortization.

Netflix Is Investing In Itself - Expands Stock Buyback