Netflix Stock Falls Due to Weak Earnings Expectations

Netflix shares fell approximately 4% on Thursday after the close of the trading session, following the company's presentation of third-quarter financial guidance that failed to meet analyst expectations.

The company projects earnings per share of $0.82 for the third quarter, while Wall Street expected $0.84. Additionally, Netflix forecasts revenue of $12.86 billion, which falls short of analysts' estimate of $13 billion.

Netflix also announced that starting from January 2027, it will publish platform engagement statistics only once a year, instead of the current semi-annual reports. The company aims to redirect investor attention toward financial metrics—revenue and operating profit. It's worth noting that Netflix already discontinued publishing quarterly subscriber data in 2025.

According to the company, its financial position remains stable and it expects to achieve its annual targets.

Competition for Netflix is intensifying from both traditional media companies, including Disney, and digital platforms such as YouTube and TikTok, which are competing for user attention and advertising revenue.

Over the past 12 months, Netflix shares have depreciated by more than 40%. Investor skepticism has been particularly heightened after the company failed to acquire Warner Bros. Discovery's studio and streaming assets, despite considering making an offer for them.