Rachel Warren

Both were slightly above what Wall Street had been projecting.

The main driver of the stock drop that we saw post-earnings had to do with management's forecast for slower revenue growth in 2026.

They're looking for anywhere between 12% to 14% growth compared to 16% in 2025.

They also guided for lower-than-expected Q1 profit expectations.

Now, I think it's important to remember, Netflix is performing pretty strongly as a mature business.

This is a much more mature company than even five, six years ago.

They are really navigating a period of significant transition, and I think that's feeding a lot into investor uncertainty.

They reached a massive milestone of about 325 million global paid memberships last

year.

They added about 23 million subscribers over the course of 2025.

The ad business is growing significantly.

They're aggressively moving into live sports and events.

And of course, there's that high-stakes all-cash bidding war to acquire Warner Brothers.

So, I think, again, this is the undisputed leader in streaming.

They've got that humming core engine.

They're trading some short-term profit comfort for a bet on long-term dominance.

And that's something investors need to watch.

I really think that a lot of that goes back to just the maturity of the business.

You have to look at how a lot of the levers for growth for Netflix have really evolved over the last few years as well.

That ad business, of course, is growing rapidly, as Lou mentioned.