Netflix is authorizing an additional $25 billion buyback of the company’s stock, according to a Thursday SEC filing. The latest buyback is in addition to the roughly $6.8 billion remaining under the $15 billion repurchase program the company’s board approved in December 2024. NFLX stock is down over 13% in the past week.

Netflix shares fell about 9% last year after the Warner ‌Bros deal was announced, ⁠but have climbed about 10% since the company walked away from it in February. In the two months since it ⁠scrapped Warner Bros bid, Netflix has rolled out a series of growth initiatives, including acquiring Ben Affleck’s AI film-tech firm InterPositive, raising subscription prices ​in the ​U.S., and launching a gaming app ​for kids.

Additionally, since reporting first-quarter results on April 16, Netflix shares have shed more than 13% of their value. The entertainment giant’s Q1 earnings revealed $12.25 billion in revenue, slightly above expectations, but the $1.23 EPS fell short of forecasts, indicating potential profitability pressures. That caused the stock to fall this past week, a potential motivator for the decision behind the $25 billion stock buyback.

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Furthermore, Netflix (NFLX) is under the microscope of several Wall Street experts and investment firms. Recently, Ark Invest and Cathie Wood turned their attention back to Netflix, buying about 26,000 shares valued at $2.5 million through the Ark Next Generation Internet ETF (ARKW). The purchase also follows a $7 million buy in January. Wood bought shares on April 16, which is the same day that Netflix stock dropped following the disappointing earnings report. NFLX also has several buy ratings on The Street still, indicating that the slip this week may be erased soon.

Based on the average Wall Street forecast for NFLX for the next year, if you buy into the price dip now, Netflix stock could earn you between 24% and 60% ROI. Presently, NFLX is trading near the bottom of its 52-week range and below its 200-day simple moving average. Wall Street believes the stock has bottomed out, now could be a prime buy opportunity for one of the top entertainment stocks on the US market.