Business
Helped by ‘Stranger Things’ finale, Netflix lands strong fourth quarter
Netflix reported a strong finish to its fiscal year Tuesday, with revenue climbing 18% in the fourth quarter to just over $12 billion compared with a year ago.
The streaming giant’s profits during the same period reached $2.4 billion, or 56 cents a share, up from $1.87 billion, or 43 cents a share, a year earlier, the company reported.
The results were slightly ahead of Wall Street estimates and driven by growth in the company’s advertising business, higher prices and increases in paid memberships, which surpassed the 325-million mark, Netflix said in a letter to shareholders.
Netflix said total engagement on its platform, meaning the amount of time its users spent watching content, rose 2% in the second half of the year.
The company got a big boost in the quarter from the final season of its hit series “Stranger Things,” among other popular shows, documentaries and movies, including Guillermo del Toro’s “Frankenstein” and “Wake Up Dead Man: A Knives Out Mystery.”
Netflix said “KPop Demon Hunters” broke records as its most-watched movie with 482 million views in the last half of 2025. Users wanted to sing along with “KPop Demon Hunters Lyric Videos,” which scored 32 million views.
The streamer’s top series was the second season of “Wednesday,” which pulled in 124 million views. The first season of the series also popped with 47 million more.
For the year, the Los Gatos-based company reported revenue of $45.2 billion, up 16% from 2024.
The latest earnings report follows news earlier Tuesday that Netflix modified its offer to buy Warner Bros. Discovery, making it an all-cash bid. The companies agreed on the deal, valued at $82.7 billion, in December.
The agreement between the most successful streaming platform and the storied movie studio behind “Casablanca,” Harry Potter and “Batman” has its share of supporters and detractors. Netflix shares have been on a decline since the December announcement.
“Investors will ponder whether Netflix becoming HBO faster than HBO became Netflix serves their interest,” said Emarketer senior analyst Ross Benes. “So far, markets have not responded kindly to the acquisition.”
Rival bidder Paramount has made clear it will continue its hostile takeover attempt for Warner Bros., despite some setbacks. It has given the company’s investors a Jan. 21 deadline to tender their shares. It remains to be seen whether Paramount opts to extend that deadline.
Warner Bros. has rejected Paramount’s overtures multiple times in recent months, while expressing its preference for its deal with Netflix.
The results were released after markets closed. Netflix shares ended the day at $87.05, down 1% on Tuesday.
Times staff writer Meg James contributed to this report.
Business
Troubled Moreno Valley Mall closed for safety violations
The Moreno Valley Mall in Riverside County remained closed Wednesday as owners faced fire safety violations that led the city to shut down most of the vast retail center.
The sprawling indoor regional mall is a centerpiece of Moreno Valley serving customers from Riverside and San Bernardino counties. It was built in 1992 on the former site of Riverside International Raceway, once considered one of the finest automotive racing tracks in the country and a regular draw across Southern California for decades before it closed in 1989.
On Feb. 19, city officials “red-tagged” the mall for the owners’ failure to resolve a multitude of unresolved issues related to its fire protection systems.
The owners said they are “working hard to end this interruption.”
Portions of the two-level, 1.1-million-square-foot mall were deemed unsafe by county and state fire inspectors who recommended the city shut them down “until all live-saving measures are addressed,” the city said in a statement.
Department stores Macy’s and JCPenney are independently owned buildings at the mall with appropriately maintained fire protection systems that are separate from the mall’s systems, allowing them to stay open, the city said.
The16-screen Harkins Theatres movie cineplex is also open.
City Councilwoman Elena Baca-Santa Cruz told the Riverside Press-Enterprise that the mall has “hundreds of violations,” though nine of them are preventing it from reopening.
“For example, there’s no backup generator. If there was a power failure, the whole place will go dark, and that’s a safety violation,” Baca-Santa Cruz said last week.
The owners of the mall, IGP Business Group, did not immediately respond to requests for comment, but owner Matt Ilbak said in a recent Instagram post that a new generator has been installed. The company has upgraded the fire sprinkler system and is working on resolving “all of the city’s issues.”
Other city complaints about IGP’s operation of the mall were outlined in a January letter to Ilbak that cited fire code violations and also complained about “property maintenance violations” that included severely cracked pavement and curbing, as well as dead plants outside. The mall had insufficient exterior lighting, the city said, and graffiti resulting from deferred or neglected maintenance.
In Orange County, Westminster Mall, a once-popular shopping center that has been tarnished by graffiti and vandalism since it closed last year, is on track for demolition soon.
It will be replaced with housing, a hotel and some shops and stores, part of a nationwide trend that is seeing outdated, failed malls in high-traffic locations swapped for mixed-use development that typically includes apartments. The process is often lengthy, leaving empty malls in danger of abuse.
Business
Trump’s plan for rising energy costs: Pump oil, make data centers pay
Energy affordability was in the spotlight during President Trump’s lengthy and at times rambling State of the Union address Tuesday evening as the president promised to bring down electricity prices in an effort to assuage voter concerns about rising costs.
The president announced a new “ratepayer protection pledge” to shield residents from higher electricity costs in areas where energy-thirsty artificial intelligence data centers are being built. Trump said major tech companies will “have the obligation to provide for their own power needs” under the plan, though the details of what the pledge actually entails remain vague.
“We have an old grid — it could never handle the kind of numbers, the amount of electricity that’s needed, so I am telling them they can build their own plant,” the president said. “They’re going to produce their own electricity … while at the same time, lowering prices of electricity for you.”
The announcement comes as polling shows Americans are dissatisfied with the economy and concerned about the cost of living. Experts on both sides of the political spectrum have said the energy affordability issue could translate to poor outcomes for Republicans in the midterm elections this November, as it did in a few key races in New Jersey, Virginia and Georgia last year.
While Trump has focused on ramping up domestic production of oil, gas and coal, residential electric bills have been soaring — jumping from 15.9 cents per kilowatt-hour in January 2025 on average to 17.2 cents at the end of December, according to the U.S. Energy Information Administration.
Through one year into his second term as president, Trump has vastly changed the federal landscape when it comes to energy and the environment, reversing many of the efforts made by the Biden administration to prioritize electrification initiatives and investments in renewable energy via the Inflation Reduction Act and Bipartisan Infrastructure Law.
Among several changes, Trump’s administration has slashed funding for solar programs, ended federal tax credits for electric vehicles and canceled grants for offshore wind power — even going so far as to try to halt some such projects that were nearing completion along the East Coast.
Trump has also championed fossil fuel production and on Tuesday doubled down on his “drill baby drill” agenda, touting lower gasoline prices, increased production of American oil and new imports of oil from Venezuela.
Many of the president’s efforts are designed to loosen Biden-era regulations that he has said were burdensome, ideologically motivated and expensive for taxpayers.
Trump has taken direct aim at California, which has long been a leader on the environment. Last year, the president moved to block California’s long-held authority to set stricter tailpipe emission standards than the federal government — an ability that helped the state address historical air quality issues and also underpinned its ambitious ban on the sale of new gas-powered cars in 2035.
Trump also slashed $1.2 billion in federal funding for California’s effort to develop clean hydrogen energy while leaving intact funding for similar projects in states that voted for him. In November, his administration announced that it will open the Pacific Coast to oil drilling for the first time in nearly four decades, a move the state vowed to fight.
But perhaps no issue has come across voters’ kitchen tables more than energy affordability.
So far this term, Trump has canceled or delayed enough projects to power more than 14 million homes, according to a tracker from the nonprofit Climate Power. The group’s senior advisor, Jesse Lee, described the president’s data center announcement as a “toothless, empty promise based on backroom deals with his own billionaire donors.”
“Making it worse, Trump is continuing to block clean-energy production across the board — the only sources that can keep up with demand, ensure utility bills don’t keep skyrocketing, and prevent massive new amounts of pollution,” Lee said in a statement.
Earlier this month, Trump’s Environmental Protection Agency repealed the endangerment finding, the U.S. government’s 2009 affirmation that greenhouse gases are harmful to human health and the environment, in what officials described as the single largest act of deregulation in U.S. history. The finding formed the foundation for much of U.S. climate policy. The EPA also loosened guidelines around emissions from coal power plants, including mercury and other dangerous pollutants.
The president’s environmental record so far is “written in rollbacks that put the interests of some corporate polluters above the health of everyday Americans,” read a statement from Marc Boom, senior director of the Environmental Protection Network, a group composed of more than 750 former EPA staff members and appointees.
Further, Trump has worked to undermine climate science in general, often describing global warming as a “hoax” or a “scam.” During his first year in office, he fired hundreds of scientists working to prepare the National Climate Assessment, laid off staffers at the National Oceanic and Atmospheric Administration and dismantled the National Center for Atmospheric Research, one of the world’s leading climate and weather research institutions, among many other efforts.
In all, the administration has taken or proposed more than 430 actions that threaten the environment, public health and the ability to confront climate change, according to a tracker from the nonprofit Natural Resources Defense Council.
The opposition’s choice for a rebuttal speaker is indicative of how seriously it is taking the issue of energy affordability: Virginia Gov. Abigail Spanberger focused heavily on energy affordability during her campaign against Republican Lt. Gov. Winsome Earle-Sears last year, including vows to expand solar energy projects and technologies such as fusion, geothermal and hydrogen. Virginia is home to more than a third of all data centers worldwide.
Business
Public Storage is the latest company to leave California for Texas
Public Storage is moving to Texas after more than 50 years in California.
The company shared its plans to move its corporate headquarters from Glendale to Frisco, Texas, a suburb of Dallas, ahead of an earnings call this month. The largest self-storage brand in the U.S. has been based in Southern California since its founding in 1972 in El Cajon. The company operates more than 3,500 self-storage facilities across 40 U.S. states and has more than 5,000 employees.
Company leadership framed the move as a logistical decision rather than a full-on California exodus. The move to Texas, part of a wider overhaul of the company, will help it benefit from the “depth of talent and innovation in that market,” according to a statement.
Incoming Chief Executive H. Thomas Boyle, currently the company’s chief financial and investment officer, said during the fourth-quarter earnings call that the company has long operated in both Glendale and Dallas. Corporate job openings often were posted across both offices, but most new roles over the last several years have been filled in the Texas location, Boyle said.
“It’s about finding the right talent across the country and building the team going forward, and we look forward to strong leadership in both offices,” Boyle said.
The news comes shortly after Senate Bill 709 took effect at the start of the year. The bill was designed to place price caps on California’s self-storage industry but was scaled back to a transparency law requiring disclosures of rent hikes in rental agreements. The California Self Storage Assn., of which Public Storage is a funder, heavily lobbied against the bill.
California has been losing more companies than it’s been gaining since 2014, many to Texas. However, experts and economists have told The Times the corporate departures represent adjustments to California’s $4.1-trillion economy, rather than signs of systemic decline.
Last year the hair care company John Paul Mitchell Systems moved from Southern California to Wilmer, Texas, and the green energy company GAF moved from San José to Georgetown, Texas.
In 2024, Chevron announced plans to move its headquarters from San Ramon to Houston after years of butting heads with politicians in Sacramento over climate and energy policies.
That year, Elon Musk moved the headquarters of SpaceX and X to Texas because of a new state law that prohibits mandating that teachers notify families about student gender identity changes. Three years earlier, Tesla moved its headquarters from Palo Alto to Austin, Texas.
In 2019, financial services company Charles Schwab relocated from San Francisco, where it was founded, to Westlake, Texas.
Other billionaires including Oracle founder Larry Ellison and Palantir founder Peter Thiel have begun distancing themselves from California as a labor-backed coalition gathers signatures in the hopes of putting a one-time 5% tax on state billionaires’ total wealth on the November ballot.
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