Netflix reported earnings last night and the stock is down today.

What's going on?

Monty Full Money starts now.

Welcome to Motley Full Money. I'm Travis Hoy. I'm joined by Rachel Warren and Lou Whiteman.

Big news over the last 24 hours has been Netflix. They reported earnings yesterday. The numbers

looked pretty good, but the stock's down about 3%. As we're recording, it was down about 5% to the open. But Rachel, what did you see

from the results from Netflix? I mean, despite the market's response, I would say it was a pretty

good report for the company. And I want to talk about a few of these numbers and metrics. So

Netflix, their Q4 revenue was just a little over $12 billion. That was actually up about

18% from one year ago.

Earnings per share of 56 cents. Now, 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. And 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,

you know, five, six years ago. They are really navigating a period of significant transition,

and I think that's feeding a lot into investor uncertainty. You know, 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 more to acquire

Warner Brothers. So I think, again, this is the undisputed leader in streaming. They've got that

...