--- title: "Netflix Is Investing In Itself - Expands Stock Buyback" type: "News" locale: "en" url: "https://longbridge.com/en/news/283842823.md" description: "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." datetime: "2026-04-24T06:19:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283842823.md) - [en](https://longbridge.com/en/news/283842823.md) - [zh-HK](https://longbridge.com/zh-HK/news/283842823.md) --- # Netflix Is Investing In Itself - Expands Stock Buyback **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. ## **Share Repurchase Strategy Expands** 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. ## Warner Merger Failure 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. ## **First-Quarter Performance** 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. ## **Outlook Signals Near-Term Cost Pressure** 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. "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," 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. ## **Analyst Consensus & Recent Actions** The stock carries a Buy rating with an average price target of $114.15. Recent analyst moves include: - **Piper Sandler**: Overweight (Raises target to $115.00) (April 17) - **Oppenheimer**: Outperform (Lowers target to $120.00) (April 17) - **Barclays**: Equal-weight (Lowers target to $110.00) (April 17) ### Top ETF Exposure - **The Communication Services Select Sector SPDR Fund (NYSE:XLC)**: 5.71% weight - **First Trust Dow Jones Internet Index Fund (NYSE:FDN)**: ~9% weight **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_ ### Related Stocks - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [NFXL.US](https://longbridge.com/en/quote/NFXL.US.md) - [ESPO.US](https://longbridge.com/en/quote/ESPO.US.md) - [NFLU.US](https://longbridge.com/en/quote/NFLU.US.md) - [NFLW.US](https://longbridge.com/en/quote/NFLW.US.md) ## Related News & Research - [Netflix, Inc. $NFLX Shares Acquired by Legacy Advisors LLC](https://longbridge.com/en/news/283487964.md) - [Advisors Capital Management LLC Increases Position in Netflix, Inc. $NFLX](https://longbridge.com/en/news/284166135.md) - [Why Netflix (NFLX) Is Down 5.0% After Massive Buyback Expansion And Reed Hastings’ Exit](https://longbridge.com/en/news/284115625.md) - [Wolfe Says Buy Netflix Stock (NFLX); Remains Bullish About its 'Ability to Raise Prices'](https://longbridge.com/en/news/283653462.md) - [Facet Wealth Inc. 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