Netflix Lures McDonald’s Fans as Massive Buyback Ignites Bull Case

Netflix ( (NFLX) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Netflix is back in the spotlight after a volatile week, pairing a high‑profile brand partnership with a major capital return plan. The company has teamed up with McDonald’s on a global Happy Meal promotion for the new animated series “Stranger Things: Tales From ’85,” using toys, activity books, and QR‑driven games to deepen engagement and keep the Stranger Things franchise in front of millions of families worldwide.

On the market side, Netflix shares rebounded in pre‑market trading after a steep 13% post‑earnings sell‑off and the announcement that co‑founder Reed Hastings is stepping down. Management responded with a huge $25 billion share buyback, on top of $6.8 billion remaining from a 2024 program, and scrapped a potential Warner Bros. Discovery deal, signaling a clear shift from risky M&A toward rewarding shareholders.

Although Q2 guidance points to slower revenue growth and short‑term margin pressure from higher content amortization, Q1 results topped expectations and 2026 targets still call for 12%‑14% organic growth as ad revenue is projected to roughly double. Analysts view the margin hit as a timing issue, not a demand problem, and have raised FY26 EPS estimates to about $3.50, implying more than 40% earnings growth.

After the pullback, Netflix trades around 28.9x EV/EBIT, below its five‑year average and near levels seen earlier this year, which many analysts see as an attractive re‑entry point. Wall Street remains strongly positive, with a Strong Buy consensus, 29 Buys versus six Holds, and an average price target of $115.53 that suggests roughly 24% upside, framing the recent weakness as a buy‑the‑dip opportunity in a still‑dominant streaming leader.