Netflix reported better-than-expected profits, but investors weren’t convinced about what lies ahead. The stock dropped 5% to 6% after hours as weaker profit guidance and a lower advertising revenue forecast raised concerns about growth.
The numbers
- Q3 revenue: $12.87 billion
- Q3 EPS: $0.87 vs. $0.82 expected
- Q4 EPS guidance: $0.67 vs. $0.73 expected
What’s worrying investors?
Netflix cut its 2026 advertising revenue forecast from $3 billion to $2.7 billion. With growth slowing, the company needs to show that advertising, content and new subscribers can drive its next phase.
A major shake-up
Netflix cut around 1,000 jobs and appointed Peter Rice as its new chief content officer, signalling a fresh push on content and execution.
The India story
View hours in India grew 24% year on year, highlighting the importance of international markets to Netflix’s growth.
What’s next?
Can Netflix deliver stronger growth beyond price hikes? Investors will be watching its advertising business, content performance and upcoming earnings closely.
To read more, click: Why did Netflix fall after a profit beat? - Vested Finance