Netflix has announced plans to buy back another $25 billion worth of its own shares after its stock fell sharply in recent days. The move comes to support investor confidence after weak financial guidance and stepping down of Reed Hastings hurt the company’s market value.
The new buyback program was approved by Netflix’s board and adds to an earlier share repurchase plan announced in December 2024, which still had $6.8 billion left. Unlike some buyback programs, this one has no expiry date, giving Netflix the flexibility to purchase shares whenever it chooses.
A stock buyback happens when a company uses its own cash to buy shares from the market. This reduces the total number of shares available, which can increase earnings per share and often helps lift the stock price. In March alone, Netflix bought back 13.5 million shares for around $1.3 billion.
The announcement comes just days after Netflix reported disappointing results and gave a weaker outlook for the coming months. Investors were also shaken by news that chairman and co-founder Reed Hastings will step down in June. Since April 16, Netflix shares have dropped more than 13%.
Netflix had also recently stepped away from a high-profile attempt to take control of Warner Bros. Discovery’s streaming and studio business. Investors had worried the deal would leave Netflix with too much debt. Meanwhile, Paramount Skydance Corp. paid Netflix a $2.8 billion breakup fee.
Overall, the buyback signals that Netflix believes its stock is undervalued and wants to reassure investors during a difficult period.