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Netflix shares hit a 52-week low after softer-than-expected Q3 outlook
For the third quarter, Netflix forecasts revenue growth of 11.7%, below Street expectations, and it will shift engagement metrics to annual reporting starting in 2027.
Netflix stock slid sharply after the company released its second-quarter results, with shares falling in pre-market trading and touching a 52-week low, according to Yahoo Finance.
The outlet said Netflix’s Q2 performance was broadly in line with expectations, supported by subscriber expansion, price increases, and growth from its advertising-supported business, while the investor reaction turned negative after management issued a softer-than-anticipated outlook for the third quarter.
For Q3, Netflix expects revenue growth of 11.7%, which missed the Street’s forecast, raising concerns that revenue and earnings momentum could moderate in coming quarters.
Yahoo Finance also cited Netflix’s plan to report engagement metrics annually beginning in 2027 instead of twice a year, a change that has prompted speculation about slowing viewing engagement, along with tougher year-over-year comparisons in the second half of the year.