Netflix announces USD25b share buyback after stock slump
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The news: Streaming giant Netflix has announced plans to buy back USD25 billion ($35 billion) in stock after March earnings pushed its share price lower.
The numbers: In a regulatory filing published on Thursday, Netflix said its board has endorsed plans to launch the USD25 billion buyback, in addition to an existing share buyback authorised in 2024 which still has USD6.8 billion available for stock purchases. The new buyback does not have an expiration date.
Shares in Netflix are down over 13% since the company released earnings on 16 April.
The context: Netflix posted second quarter earnings per share forecast of 78 US cents, less than the market expectations for 84 cents, and that revenue for the three months to June is expected to come in at USD12.57 billion, also below expectations for USD12.64 billion, according to Bloomberg data.
The results and forecasts were the first to be issued since Netflix walked away from plans to acquire Paramount Skydance following a bidding war with Warner Bros Discovery.
As well as weaker earnings, last week the company also announced that co-founder and chair Reed Hastings would step down in June.
The source: Netflix SEC filing
