Netflix spends $5 billion on stock buybacks
Netflix is on pace for its most profitable year ever, with the company spending nearly $5 billion on stock buybacks.
The company’s management reloaded its buyback authorization to $27 billion.
Netflix expects revenue growth of 13% to 14% and an operating margin of 31.5% for the full year, with free cash flow growing by more than 30% to $12.5 billion.
The company’s cash flow profile is strengthening as revenue growth outpaces content spending growth, with a margin expansion of over 1,000 basis points in the past three years.