The Globe and Mail reports in its Wednesday, Jan. 21, edition that Netflix ended the year with strong financial results despite slowing subscriber growth, highlighting the significance of its $72-billion (U.S.) bid to acquire Warner Bros. and integrate HBO Max into its streaming service.
An Associated Press dispatch to The Globe reports that Netflix's fourth quarter results surpassed stock market analysts' projections, with over 325 million worldwide subscribers, reflecting an addition of about 23 million since 2024.
The 2025 subscriber increase slowed significantly to just four million, following a surge of 41 million in 2024. This has intensified concerns among investors that Netflix's growth may have peaked since the launch of its low-priced, ad-supported service in 2022.
Management forecast a profit for January-March below analysts' expectations and announced Netflix would pause stock buybacks while completing the Warner Bros. deal.
"Over all, this points to a challenging start to the year," Investing.com stockpicker Thomas Monteiro said.
Netflix's shares sank 5 per cent in extended trading, even though its profit and revenue for the past quarter were better than anticipated.
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