BySiladitya Ray,
Forbes Staff.
Netflix shares tanked sharply in premarket trading Wednesday despite the company’s fourth quarter earnings narrowly beating Wall Street estimates, as the streaming giant projected a major increase in spending this year on movies, TV shows and the impending acquisition of Warner Bros.
Netflix’s share price fell to $81.33 early Wednesday, dropping more than 6.5% from Tuesday’s close.
The streaming giant said revenue rose 18% year over year to $12.05 billion in Q4—slightly above Wall Street's $11.97 billion projection—while its earnings per share were 56 cents, narrowly beating the 55 cents forecast.
