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Netflix Shares Hit 52-Week Low on Soft 2026 Outlook as Wedbush Touts Ad Upside

A cautious 2026 forecast has shifted attention from the Q4 beat to costs, margins, Warner deal risks.

Overview

  • Netflix topped Q4 expectations with $12.05 billion in revenue and $2.4 billion in net income, or $0.56 per share.
  • The company guided 2026 revenue to $50.7 billion to $51.7 billion, implying 12% to 14% growth versus 16% in 2025, and the stock fell to around $83.40, a 52-week low.
  • Management signaled modestly faster expense growth this year, prompting investor concerns about near-term profitability.
  • Wedbush projects at least $3 billion in advertising revenue for 2026, framing ads as an underappreciated growth driver.
  • Netflix’s raised all-cash offer for Warner Bros. Discovery assets stands at $27.75 per share, valuing the deal at about $82.7 billion including some debt, with shareholder, regulatory, integration, and rival-bid uncertainties still unresolved.