Netflix Drops 9.5% After Forecast Misses Expectations

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โดย GuruFocus·Read original

Summary · why it matters

Netflix shares fell about 9.5% in Friday premarket trading after the company projected second-quarter revenue of $12.9 billion and earnings of 82 cents per share, both slightly below analysts' expectations. The stock had already dropped as much as 9% following the forecast, potentially pushing it to its lowest intraday level since September 2024. Netflix stock has now declined more than 40% over the past year as investors assess the company's pursuit of Warner Bros. Discovery Inc., a media and entertainment company, alongside its recent financial performance. The company's future growth has become the main focus after a months-long shortage of major new hits and weaker viewer retention for several returning shows during the first half of the year. Netflix reported second-quarter revenue of $12.6 billion and earnings of 80 cents per share, matching Wall Street estimates, and plans to increase programming spending by about 10% this year while expanding into live sports, video podcasts, and a partnership with French broadcaster TF1.

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