Cathie Wood’s Bold Netflix Bet Amid Wall Street Panic

NEW YORK, NY — On November 2, 2025, Cathie Wood, CEO of Ark Invest, made headlines by purchasing $17.2 million in shares of Netflix despite a wave of panic selling across Wall Street.

Wood, typically known for investing in high-growth companies like Tesla and Nvidia, took a contrarian approach when others were quick to offload their Netflix stakes after the company reported disappointing third-quarter earnings. The stock price fell 10% in one day, dropping its market cap to $465 billion.

Analysts had expected Netflix to report earnings of $6.97 per share, but the actual number came in at just $5.87. Additionally, the company reported a revenue growth margin of 28%, lower than anticipated, and provided cautious guidance for the fourth quarter, projecting just 16.7% growth.

Many investors interpreted this as a sign that Netflix’s growth was slowing. The stock has gradually declined almost 18% from its all-time high reached on June 30, 2025.

However, Wood saw potential in Netflix’s long-term trajectory. The earnings miss was largely attributed to a one-time tax charge of $619 million in Brazil, suggesting that the earnings report might not fully represent the company’s health.

“Investments are made with a lens of long-term growth and innovation,” Wood stated, reinforcing Ark Invest’s strategy of focusing on future potential rather than short-term fluctuations.

Adding to the complexity, Netflix has been making strides in new revenue streams, such as its ad-supported subscription tier introduced in 2022. Co-CEO Greg Peters noted that ad revenue for 2025 could double compared to 2024.

Despite the recent turmoil, Wood remains optimistic about Netflix’s ability to recover and grow, believing that the recent sell-off may represent a classic buying opportunity.