Netflix Shares Fall to Two-Year Low After Earnings
- On Tuesday, Netflix shares dropped around 6% in after-hours trading after the streaming giant issued weaker-than-expected fourth-quarter profit forecasts and lowered its 2026 advertising revenue projections to approximately $2.7 billion.
- Co-Chief Executive Ted Sarandos told investors Netflix requires 'better execution in the US,' where it captured 7.8% of streaming television viewers in July compared to YouTube's 14.2%, according to Nielsen.
- Netflix appointed former Disney and Fox executive Peter Rice as its new content chief, replacing Chief Creative Officer Bela Bajaria; the company also laid off 1,000 employees, representing around 6% of its workforce.
- John Belton, a portfolio manager at Gabelli Funds, stated Netflix 'has underperformed significantly over the last 6-12 months.' Sarandos emphasized roughly 95% of spending remains focused on core film and television content.
- Expanding into live sports including the Olympics and World Cup, Netflix remains 'confident' it can accelerate engagement growth despite current challenges in advertising revenue and US market competition.
26 Articles
26 Articles
Netflix’s next act may look a lot like old TV
The streaming revolution promised viewers an endless library of movies and shows for less than cable. Netflix led that charge, becoming the era's dominant streaming service. That transformation upended the economics that made television such a reliable business and created an industry with more competition, higher costs and a constant fight to keep viewers from canceling. Host Megan McArdle breaks down what Netflix’s recent leadership shake-up s…
Netflix (NASDAQ: NFLX) Stock Falls 50% From Highs But Valuation Makes It Look Attractive
Netflix (NASDAQ: NFLX) shares have dropped roughly 50% from their all-time closing high of $133.91, reached on June 30, 2025, following the streaming giant’s third-quarter earnings report. The steep decline has compressed the stock’s valuation to a point where analysts and growth-focused investors are beginning to take a closer look at the opportunity. Before the […]
With nearly $3.7 billion in profit between July and September 2026, Netflix remains a very profitable company. However, the slowdown in its growth and less favourable outlook than expected worries Wall Street. For the streaming giant, the challenge now is to capture a valuable resource: our attention.
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