Netflix

Management’s capital allocation is focused on strengthening the moat: investing in content and product, bringing ad tech in-house, expanding live programming, and returning excess cash via buybacks.

The company repurchased about 7.05 billion dollars of stock in the first nine months of 2025 and noted 10.1 billion dollars remaining under authorization as of Q3. It now expects about 9 billion dollars of free cash flow for 2025. The shift to an in-house ad platform should improve long-run targeting, yield, and margins.

Netflix avoids large, serial M&A; recent strategy has favored organic growth, selective licensing, and targeted rights like NFL Christmas and WWE Raw that monetize across ads, brand, and engagement. The approach is consistent with a quality-owner mindset. Watch dilution from executive comp, but recent buybacks have more than offset it.