Netflix spends $4.8 billion buying back stock in one quarter
The streaming company repurchased 63.9 million shares in Q3, its largest buyback ever.
Netflix spent $4.8 billion on share repurchases during the third quarter, buying back 63.9 million shares. The amount represents the company's largest repurchase ever since it started this buyback cycle in 2021.
The buyback exceeded Netflix's free cash flow for the quarter, which came in at $2.9 billion. The company drew down its cash balance to fund the purchases, signaling confidence from leadership in the stock's valuation.
Netflix still has $22.3 billion remaining on its current buyback authorization. The company posted $12.9 billion in revenue for Q3, up 11.8% year over year, matching Wall Street estimates.
Diluted earnings per share jumped 47% to $0.87, beating analyst forecasts. The repurchase activity suggests executives believe the shares trade at an attractive valuation.
Source: msn.com
