The market had a headache coming on. Netflix, that streaming outfit, was taking a slow leak after the bell. A dip, they called it. I call it gravity. The fourth quarter numbers were out, and investors weren’t exactly throwing confetti. More like clutching their wallets.
As of late afternoon, the stock was down nearly five percent. Eighty-seven twenty-six to… well, less. It wasn’t a collapse, not yet. But the air smelled of trouble. Like cheap perfume trying to cover up something worse.
They Hit Pause. And Nobody’s Dancing.
Netflix decided to shelve its share buyback program. Said they needed cash. For Warner Bros. Discovery. A merger. A takeover. Whatever you call it, it meant less money for the shareholders. They were building a fortress, and the investors were left outside in the rain.
The deal had been sweetened, apparently. All cash now. Twenty-seven seventy-five a share. Sounded generous. Until you realized it was just rearranging the deck chairs on the Titanic. The price of admission had gone up, but the ship was still sailing towards an iceberg.
The numbers themselves weren’t terrible. Twelve point oh five billion in revenue. A hair better than expected. Earnings per share, fifty-six cents. Another fractional victory. But in this game, fractions don’t buy you much. It was like finding a nickel on a sidewalk – a small consolation in a world of escalating debts.
They’re projecting fifty point seven to fifty-one point seven billion for next year. A twelve to fourteen percent bump. Sounds impressive. Until you remember growth is a hungry beast. It always wants more.
Should You Dump It?
The pause on the buyback is a signal. A quiet one, but a signal nonetheless. They’re preparing for something. Something expensive. Something that might not pay off. Investors are jittery, and rightly so. They’re being asked to trust the house, and the house always has an edge.
The stock is trading at thirty-nine times operating cash flow. A discount, they say. Compared to five years ago. But discounts are often illusions. A way to lure you into a bad deal. It’s like a crooked gambler offering you a free hand – he’s just waiting for you to ante up.
I’ve seen this movie before. A company with ambition, a merger with risk, and investors hoping for a miracle. My advice? Proceed with caution. This isn’t a buy signal. It’s a flashing red light.
Read More
- 39th Developer Notes: 2.5th Anniversary Update
- Gold Rate Forecast
- The Hidden Treasure in AI Stocks: Alphabet
- If the Stock Market Crashes in 2026, There’s 1 Vanguard ETF I’ll Be Stocking Up On
- The 10 Most Beautiful Women in the World for 2026, According to the Golden Ratio
- Senate’s Crypto Bill: A Tale of Delay and Drama 🚨
- Lumentum: A Signal in the Static
- Actors Who Jumped Ship from Loyal Franchises for Quick Cash
- Berkshire After Buffett: A Fortified Position
- Celebs Who Fake Apologies After Getting Caught in Lies
2026-01-21 01:33