Netflix shares went down by 10% after the company’s earnings forecast mentioned another quarter of slower revenue gains and scaled back viewership data. A Reuters report mentioned that stock was close to a two-year low in early trading, with the decline set to wipe out $35 billion from Netflix’s market value of about $313 billion, if losses hold.
Netflix in its latest disclosure pullback, cut the frequency of its viewing-hours report to once a year from twice starting 2027. This comes following last year’s scrapping of subscriber counts. This left investors in the dark, amid increasing competition from YouTube and traditional media.
“Whenever you take away a data point from investors when results aren’t as good as they have been, you will get punished by the market,” said Ben Barringer, head of technology research at Quilter Cheviot.
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Netflix’s failure to acquire Warner Bros. earlier this year raised doubts about its next phase of growth amid slow adoption of an ad-supported streaming tier touted as a big growth driver.
The stock has lost 44% since hitting an all-time high in June 2025, including an over 20% fall just this year.
Analysts mentioned that Netflix has a weaker content line-up this year, especially compared to 2025, which featured the final season of its hit sci-fi series “Stranger Things” and South Korean drama “Squid Games.” “Pulling back engagement reporting at the exact moment engagement is in the spotlight gives off a strong ‘nothing to see here’ vibe,” said Forrester Research Director Mike Proulx.
Netflix trades at nearly 20 times expected earnings over the next 12 months, compared with 13.5 times for Walt Disney and 6.6 times for Comcast, underscoring the premium investors place on the streaming giant. At least 18 analysts cut their price targets after Netflix forecast quarterly revenue and earnings below Wall Street expectations. The median target remains about 40% above Thursday’s closing price.
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Earlier this month, Netflix raised its subscription prices across all its streaming plans. The streaming service said Thursday the results of those price hikes were consistent with prior changes and expectations.
According to CNBC, net income for the second quarter was $3.40 billion, or 80 cents per share, compared with $3.13 billion, or 72 cents a share in the same period last year. Netflix expects third-quarter revenue to grow 12% and called its 2026 outlook consistent with earlier forecasts. The company also said it was narrowing its 2026 forecast revenue range to $51 billion to $51.4 billion for the full fiscal year, from earlier guidance of between $50.7 billion to $51.7 billion.