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Netflix shares fall after forecast signals slower revenue growth
The company also said it will report viewing-hours only once a year starting in 2027, a change investors linked to reduced transparency as competition increases.
Netflix shares dropped more than 10% on Friday after the company forecast another quarter of slower revenue gains, raising concerns that Netflix’s growth edge may be fading. The stock traded near a two-year low early in the session, with the decline on track to erase about $35 billion from Netflix’s market value, based on the roughly $313 billion figure cited by Reuters.
In the latest disclosure change, Netflix scaled back the frequency of its viewing-hours reporting to once a year from twice starting in 2027, following last year’s scrapping of subscriber counts. Reuters reported that the move has left investors with less engagement data at a time when Netflix faces tougher competition, including from traditional media and YouTube.
The company’s results outlook came as doubts linger about Netflix’s next phase of growth, after its failed attempt to pursue Warner Bros earlier this year and its slow progress in rolling out an ad-supported tier. Netflix has also seen sharp declines since its June 2025 all-time high, down 44% overall and more than 20% this year, according to the report.
Valuation and analyst reactions added to the pressure: Netflix trades at nearly 20 times expected earnings for the next 12 months, versus 13.5 times for Walt Disney and 6.6 times for Comcast, Reuters said. It also noted that at least 18 analysts cut their price targets after Netflix guided revenue and earnings below Wall Street expectations, even as the median target remained about 40% above Thursday’s close.