In 2026, Netflix (NFLX) has captured the attention of ARK Invest (ARKK). As of April 17, 2026, Netflix shares closed at $97.31, falling 9.7% after releasing mixed earnings results and breaking below the 200-day moving average of $105.88. For Cathie Wood, this decline feels familiar. ARK increased its stake in Netflix stock during the price volatility, a buy-the-dip move consistent with its past investment patterns.
Netflix reported first-quarter 2026 revenue of $12.25 billion, exceeding market expectations, but earnings per share came in at $1.23, below the consensus estimate of $1.34. The company reaffirmed its full-year fiscal 2026 revenue guidance of $50.7 billion to $51.7 billion and raised its free cash flow forecast to approximately $12.5 billion. The advertising business is accelerating its growth: over 60% of new subscriber sign-ups in the advertising market chose the ad-supported plan, while the number of advertising clients increased 70% year-over-year, surpassing 4,000.
In the first phase (2017-2020), Netflix aligned perfectly with ARK’s disruptive innovation framework. Over the past decade, Netflix shares have risen approximately 819%, with the majority of that gain occurring while ARK held the stock as a core position. The streaming boom of 2020 made Netflix a flagship holding in ARKK and ARKW.
In the second phase (2021-2022), ARK significantly reduced its Netflix stake in 2021. This strategy proved to be forward-looking: Netflix collapsed in 2022 due to stalled subscriber growth. Over the five-year period ending April 17, 2026, the stock has risen 78.05% from a split-adjusted price of $54.65, and ARK’s exit reduced its exposure before the most severe crash.
In the third phase (2025-2026), Wood has returned to the market. Netflix’s profit model has shifted from focusing on subscriber numbers to revenue per user, advertising revenue, and live events. Advertising revenue is expected to reach approximately $3 billion in 2026, doubling year-over-year. Live programming has attracted over 41 million viewers. The stock’s trailing price-to-earnings ratio is 31 times, lower than the multiple Wood was willing to pay in 2020.
Following the sharp decline in the stock price after the earnings release, Netflix plans to add $25 billion to its share buyback program. The company’s board of directors has approved the repurchase plan, which will be layered on top of the authorization granted in December 2024 and has no expiration date. In March of this year, Netflix spent approximately $1.3 billion to repurchase 13.5 million shares. Following the announcement, Netflix shares rose nearly 2% in premarket trading. Just days before this buyback announcement, Netflix disclosed weaker-than-expected earnings and announced that co-founder Reed Hastings would be stepping down, with the stock price having fallen more than 13% since April 16. Analysts at Morgan Stanley, JPMorgan, and Bank of America all maintained “Buy” ratings after the earnings decline, with a consensus price target of $114.46.
