Fast Money Blog- 1/23/26
The week on Wall Street saw the stock market experience volatility swings due to the uncertainty around geo-political issues along with the start of next week’s earnings period.
On Tuesday, Jan. 20th, Netflix, Inc. (NFLX) released strong Q4 2025 earnings. Top line quarterly revenue came in at $12 billion, up 18% year over year. The company said the revenue was boosted by stronger than expected subscriber growth and ad revenue. For the full year 2025, top-line revenue was up 16% for a total of $45 billion.
NFLX Highlights You Need To Know
Netflix crossed a major subscriber milestone, with over 325 million paid subscribers, as the company disclosed their subscriber figures for the first time in a while.
For fiscal year 2025, Netflix ad revenue brought in $1.5 billion, a growth of more than 2.5 times the amount they took in during 2024.
For 2026, the company forecasts revenue of $50.7B-$51.7B, an increase of 12%-14% year over year.
So Tyrone, why did Netflix stock drop so much after the earnings release?
Despite the impressive growth in revenue and subscribers, Wall Street has lost some enthusiasm for Netflix stock due to the uncertainty of the large and costly Warner Bros. acquisition bid.
Keep in mind that this is typical when there is a corporate acquisition, as the acquirer is usually using corporate reserves to make the purchase.
I think it might be too soon to establish a position in NFLX right now, but in the next 2 to 5 years this stock is clearly going to be a winner.
Tyrone Jackson
The Wealthy Investor