Netflix Shares Fall to Two-Year Low After Earnings
Netflix said ad revenue growth lagged targets and viewer engagement slowed, even as third-quarter revenue and profit topped FactSet estimates.
- 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.
13 Articles
13 Articles
Netflix Stock Deflates to Two-Year Low. What Will It Take to Revive Revenue Growth?
Shares of Netflix hit a two-year low after the streamer’s Q3 2026 earnings report revealed an ongoing softening in top-line growth and a miss on advertising revenue for the full year. The stock was down -7% in premarket trading Wednesday, to under $64/share, pushing it down nearly 30% year-to-date to the lowest point since August […]
The Independent
The Independent (US)Netflix shares plunge as streaming giant suffers growth slowdown
The world's largest streaming provider, Netflix, is in the middle of a profound transformation. Competition is increasingly gaining ground, while new series are no longer as attractive as they used to be.
On Tuesday, Netflix presented estimates below market expectations for fourth quarter profit and reduced its forecast of advertising revenues for the whole year, writes Reuters. The announcement comes just a few days after the streaming giant fired 6% of employees and replaced two of the most important directors of the team...
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