NETFLIX JUST DROPPED A MASSIVE BOMB! 💣🍿
Netflix stock is tumbling (down over 4%) after hours, but the numbers aren’t even the real story. The company just announced a game-changing move that has Wall Street freaking out. 😱
Here is the ELI5 breakdown of what is happening:
The Good News: They actually made more money than expected last quarter. People are still subscribing like crazy (over 325 million users!). ✅
The "Meh" News: Their forecast for the next few months was a little weak. Wall Street hates uncertainty. 📉
The HUGE News: Netflix said, "We are stopping stock buybacks." Usually, companies buy their own stock to keep the price up. Why did they stop?
The Reason: They are hoarding cash to buy Warner Bros. Discovery (WBD) in an ALL-CASH deal. 🤯
Think of it like this: Netflix is like a rich friend who stopped buying fancy dinners (buybacks) because they are saving every penny to buy a massive mansion (WBD/HBO).
This means Netflix could soon own Harry Potter, Batman, and Game of Thrones. But acquiring a massive company is messy, expensive, and risky. That’s why investors are nervous right now.
So, the big question:
Do you think Netflix owning HBO and DC Comics is a genius move for the long run, or is this going to be a disaster? 👇
@TigerStars @Tiger_comments @Daily_Discussion @TigerEvents @TigerWire
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