Netflix IncNFLX
▲ PositiveCapitalrelevance
SGA added to position after selloff; buyback authorization and AI investment plans support stock.
Impact on stocks 2
Communication Services
Netflix Inc
Warner Bros Discovery IncWBD
Mentioned
Sustainable Growth Advisers added to its Netflix position during the second quarter of 2026 after the stock came under pressure despite solid first-quarter results. Netflix revenue grew 16% year-over-year, or 14% excluding foreign exchange, and operating income rose 18%, supported by strong growth in APAC and Latin America. Second-quarter revenue guidance came in roughly 1% below expectations and EBIT guidance was 5% light due to content amortization timing. Management maintained full-year guidance of 11% to 13% revenue growth excluding foreign exchange and approximately 20% profit growth rather than raising it, which disappointed some investors. SGA noted that with the Warner Bros. Discovery acquisition now behind it, Netflix can refocus on the core business and deploy excess free cash flow toward AI investment and buybacks, including a new $25 billion authorization.
Netflix IncSGA added to position after selloff; buyback authorization and AI investment plans support stock.
Warner Bros Discovery Inc