Netflix shares slide in Europe despite Q4 beat
Netflix shares listed in Frankfurt fell sharply in early European trading on Wednesday, even after the streaming giant reported stronger-than-expected fourth-quarter revenue and earnings.
Netflix stock dropped about 7% by mid-morning trade, extending losses that began after the company launched its bid for Warner Bros Discovery in early December. The stock has since lost roughly 20% of its value, News.Az reports, citing Reuters.
Investor concern centers on Netflix’s aggressive pursuit of Warner Bros Discovery, which has triggered a fierce bidding battle. To help finance a potential deal, Netflix told investors it will pause share buybacks in order to conserve cash.
The market reaction suggests that, despite solid Q4 performance, uncertainty over the scale and cost of the Warner deal is weighing heavily on investor sentiment.
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