On July 28, Netflix rose 3.09% in regular trading, trading at $73.63/share, with turnover of $903 million. The rebound comes as the company's massive capital return program and robust profitability outlook provided recovery momentum following a sharp post-earnings selloff earlier this month.
On the news front, Netflix disclosed that it deployed nearly $5 billion in share repurchases during Q2, marking a record single-quarter buyback, while raising its total repurchase authorization to $27 billion. Management guided full-year revenue growth of 13%-14%, an operating margin of 31.5%, and free cash flow expected to surge over 30% year-over-year to $12.5 billion. The aggressive capital return plan, combined with steady earnings expectations, offered a stabilizing force after Q3 guidance disappointed consensus, triggering a decline of over 10% on July 17. Additionally, Netflix recently completed a $1 billion debt offering of senior notes due 2036, with proceeds earmarked for retiring maturing obligations and general corporate purposes.
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