Why Netflix Stock Dipped Lower Today

Leading global content streamer Netflix (NASDAQ: NFLX) dipped 4% as of 11 a.m. ET on Wednesday after the juggernaut reported mixed fourth-quarter earnings yesterday that narrowly beat estimates. While the market was hoping for blowout results, I think Netflix's earnings were excellent. Fourth quarter revenue grew 18%, remaining above the company's annualized five-year average of 14%. Earnings per share spiked 30%. Free cash flow (FCF) rose to $9.5 billion in 2025 -- compared to sales of $45 billion.However, after management offered conservative guidance for 14% revenue growth and FCF of $6 billion in 2026, the market sent the stock slightly lower, possibly due to this softer outlook.A few items from Netflix's Q4 earnings stood out to me. While global total hours viewed only rose 2% (up from 1% last year), viewing time for Netflix-branded originals rose 9%. This strong engagement with the company's own content continues to make me optimistic about the potential Warner Bros. Discovery deal, as it'd create a trove of content and brands for Netflix to reimagine.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool