Due to poor performance leading to a significant drop in stock price, Netflix (NFLX.US) announced a $250 billion buyback plan as a "stabilizing pill."

After a disappointing financial outlook led to a significant drop in stock price, Netflix (NFLX.US) plans to add $25 billion to its stock repurchase program. In a regulatory filing submitted on Thursday, Netflix stated that its board of directors has approved the repurchase plan. This additional repurchase amount will be in addition to the repurchase authorization approved in December 2024, which currently has $6.8 billion remaining, and the new repurchase plan has no expiration date. In March of this year, Netflix spent approximately $1.3 billion to repurchase 13.5 million shares of the company's stock. After the announcement, Netflix's stock rose nearly 2% in pre-market trading on Thursday. Just days before this repurchase announcement, Netflix disclosed disappointing financial results and announced that co-founder and chairman Reed Hastings would be stepping down, causing a double negative impact on the stock price. Since the release of the financial report on April 16th, Netflix's stock price has dropped by over 13%. In addition, in February of this year, Netflix withdrew from a fierce battle for control of Warner Bros. Discovery (WBD.US) media and film production business. During the months-long standoff with Paramount (PSKY.US), market investors were concerned that a potential acquisition deal would significantly increase Netflix's debt burden, causing the company's stock price to weaken continuously.