Netflix shares tumbled 9.2% in premarket trading on Friday after the streaming major issued another weaker-than-expected earnings forecast, deepening doubts about its ability to sustain growth momentum. The company forecast quarterly earnings per share and revenue below analyst estimates for a second consecutive quarter, prompting at least 11 analysts to lower their price targets. Pivotal Research Group analyst Jeffrey Wlodarczak said the story lacks excitement, noting that younger audiences are increasingly gravitating toward free social media platforms over long-form content, which could result in slower subscriber growth and more aggressive price increases. Netflix also plans to cut its twice-yearly viewing-hours report to once a year starting in January 2027, having already stopped publishing quarterly subscriber numbers in 2025. The stock was trading at 19.92 times 12-month forward profit estimates, compared with 13.54 for Walt Disney and 6.57 for Comcast.
Netflix IncNetflix issued a weaker-than-expected earnings forecast, leading to analyst downgrades and a 9% stock drop.
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