On January 21, 2026, the ARK Next Generation Internet ETF acquired 83,368 Netflix shares in a $7.11 million transaction. The purchase followed Netflix’s fourth-quarter earnings release, where the company reported adjusted EPS of $0.56, surpassing consensus by $0.01. Despite weaker-than-expected guidance for the first quarter—forecasting approximately $12.2 billion in revenue—Cathie Wood’s team viewed the pullback as a buying opportunity, increasing ARKW’s Netflix weighting by roughly 15 basis points. This move underscores Ark Invest’s conviction in Netflix’s long-term streaming leadership and content innovation strategy.

Netflix closed out 2025 with 325 million paid memberships, up 8% from year-end 2024. Total revenue climbed 17.6% year-over-year to $12.05 billion, driven by 30% growth in diluted EPS and 250% jump in ad-supported tier revenue, which surpassed $1.5 billion for the full year. Original series accounted for 9% of total viewing hours, while licensed content viewing declined 4%, reflecting a strategic pivot toward in-house productions. Free cash flow reached an all-time high of $9 billion, enabling the company to fund content spending of $18 billion without additional debt issuance.

Management set 2026 revenue guidance at $50.7 billion to $51.7 billion—implying mid-teens growth but below street forecasts for 18% expansion—and projected free cash flow of approximately $6 billion, down from $9 billion in 2025. Netflix plans to suspend share buybacks to allocate capital toward its $72 billion bid for Warner Bros. Discovery assets. Investor reaction was swift: sell-side analysts lowered forward multiples by an average of 10%, and several firms downgraded the stock to Neutral or Hold, citing integration risk and near-term margin compression as primary overhangs.

In its Q4 earnings call, Netflix outlined plans to double live event programming, having executed over 200 global broadcasts, including sports exhibitions in Asia. Advertising revenue is slated to double again in 2026, supported by enhanced targeting tools and expanded measurement partnerships that now cover 85 markets. Additionally, the company will launch a video-podcast platform with an initial slate of 100 programs, aiming to increase average engagement per user by 12% and drive higher ad load efficiency across its ad-supported tier.