Netflix Shares Drop 7% in Europe After Q4 Results

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Shares of Netflix listed in Frankfurt fell sharply on Wednesday, dropping around 7% in early trading, despite the company beating expectations for fourth-quarter revenue and earnings. The decline reflects investor concern over Netflix’s capital allocation as it pursues a high-stakes acquisition.

Netflix told investors it would pause share buybacks in order to preserve cash to help fund its proposed deal for Warner Bros Discovery, where it faces competition from rival bidders. By 0714 GMT, the stock was down 7% in European trading, after closing 0.8% lower in Tuesday’s regular U.S. session.

The streaming giant’s shares have fallen roughly 20% since it launched its bid for Warner Bros Discovery earlier this year, highlighting market unease over the scale, financing and regulatory risks of the transaction. Investors appear to be weighing the long-term strategic benefits of expanding Netflix’s content library against the near-term financial strain of a costly acquisition.

While Netflix’s core business continues to show resilience, the ongoing bidding war and decision to halt buybacks have added volatility to the stock, particularly in overseas markets.

FTC Appeals Ruling in Meta Antitrust Case Over Instagram, WhatsApp Deals

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The U.S. Federal Trade Commission has appealed a court ruling that dismissed its antitrust case against Meta Platforms, seeking to revive claims that the company illegally built monopoly power by acquiring Instagram and WhatsApp. The FTC said its position remains unchanged despite last year’s dismissal.

The agency argues that Meta’s purchases of Instagram in 2012 and WhatsApp in 2014 harmed competition by eliminating emerging rivals. It has asked the courts to reconsider forcing a potential breakup or divestment of the platforms. Meta was sued in 2020, years after regulators initially approved the deals.

U.S. District Judge James Boasberg ruled in November that Meta does not currently hold a monopoly, citing strong competition from platforms such as TikTok. Meta said the decision correctly reflects the competitive landscape and said it will continue investing and innovating in the United States.

OpenAI Rolls Out Age Prediction on ChatGPT

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OpenAI said it is rolling out age prediction on ChatGPT worldwide to identify whether an account is likely owned by a minor, as the company prepares to introduce adult content features for verified users.

OpenAI said that when its model estimates an account may belong to someone under 18, ChatGPT will automatically apply additional safeguards to limit exposure to sensitive content. Users incorrectly classified as under 18 can restore full access by submitting a selfie through Persona, an identity verification service. In the European Union, the feature will be introduced in the coming weeks.

The move comes as OpenAI lays the groundwork for an “adult mode” on ChatGPT. Applications chief Fidji Simo previously said adult features are expected to debut in the first quarter of 2026, following comments from chief executive Sam Altman about allowing mature content for users who verify their age.

ChatGPT has around 800 million weekly active users. Backed by Microsoft, OpenAI has also begun introducing ads to some U.S. users as it seeks new revenue streams to support rising computing and infrastructure costs.