Netflix Stock Faces Significant Decline
Netflix’s stock (NASDAQ: NFLX) has dropped nearly 30% since the company reported its third-quarter earnings on October 21, 2023. This decline is primarily due to uncertainty surrounding Netflix’s potential acquisition of assets from Warner Bros. Discovery. The stock is currently trading at a historically low valuation as the company prepares to report its fourth-quarter and full-year 2025 results on January 20, 2024.
In Q3, Netflix generated $11.5 billion in revenue (17% year-over-year growth) and reported an earnings per share (EPS) of $5.87. However, its operating margin of 28.2% fell short of Wall Street’s expectation of 31.5%. For Q4 2025, analysts project revenue of $11.9 billion and an EPS of $5.45, with an operating margin forecast at 23.9%.
The ongoing bidding war for Warner Bros. assets, coupled with concerns over financing and integration, has contributed to the stock’s sell-off. Analysts are closely monitoring Netflix’s financial guidance and performance during the upcoming earnings call.
