Netflix (NFLX) Stock Gets a $25 Billion Vote of Confidence From Its Own Board

TLDR

• Netflix’s board approved a new $25 billion share repurchase program with no expiration date.
• The buyback comes after Netflix dropped its $72 billion bid for Warner Bros. Discovery assets.
• Netflix still has roughly $6.8 billion left under its December 2024 buyback plan, making the total available over $31 billion.
• The stock rose 1.5% in premarket trading following the announcement.
• Netflix has more than 4.2 billion shares outstanding and a market cap of nearly $393 billion.

Netflix announced a new $25 billion share buyback program on Thursday, sending the stock up 1.5% in premarket trading.

Netflix, Inc., NFLX

The board authorized the new repurchase plan with no expiration date. It sits on top of a previous $15 billion buyback approved in December 2024, which still had about $6.8 billion remaining as of the end of March. That puts total available buyback capacity at over $31 billion.

The move comes roughly two months after Netflix walked away from a $72 billion deal to acquire Warner Bros. Discovery’s film and TV studios and HBO Max streaming service.

Since stepping back from that deal, Netflix has kept busy. It acquired Ben Affleck’s AI film-tech company InterPositive, raised subscription prices in the U.S., and launched a kids gaming app.

Netflix had previously said it plans to invest around $20 billion this year in films and television content, even as it resumes returning capital to shareholders.

Buyback Builds on December 2024 Plan

The new $25 billion authorization is separate from — not a replacement of — the earlier December 2024 program. Netflix is effectively stacking repurchase capacity rather than starting fresh.

With more than 4.2 billion shares outstanding as of March 31, the company has plenty of room to deploy that capital. Its market capitalization stands at nearly $393 billion.

The company had already signaled it would restart buybacks once it stepped away from any major acquisition. This announcement follows through on that.

What Analysts Are Watching

Analysts have pointed to advertising, live programming, and sports as the key growth levers for Netflix going forward. The ad-supported tier, in particular, is seen as central to future revenue expansion.

Netflix’s Q2 outlook, issued last week, came in below expectations. The company also confirmed that co-founder and Chairman Reed Hastings will leave the company in June.

Despite the softer Q2 forecast, the buyback announcement gave investors something to cheer on Thursday morning, with the stock moving higher before the opening bell.

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