Investors await Netflix’s Q2 results as revenue growth slows to 13.6% and ad revenue lags expectations at $705.8 million.
Netflix reports second-quarter earnings on Thursday, with revenue expected to rise 13.6% to $12.59 billion, marking its slowest growth in over a year. Analysts forecast adjusted earnings per share of 79 cents, reflecting investor concerns over faltering user engagement and intensifying competition from rivals like YouTube and traditional media.
The company’s ad-supported tier, seen as a key growth driver, is projected to generate $705.8 million in revenue, below initial expectations. Emarketer analyst Ross Benes noted that the ad business has underperformed, prompting downward revisions to forecasts. Netflix’s stock has fallen over 20% this year amid doubts about its ability to sustain momentum.
To counter slowing growth, Netflix has expanded into live events, including reported interest in bidding for FIFA World Cup U.S. rights and acquiring film platform Letterboxd. The shift comes as password-sharing crackdowns and price hikes lose steam as revenue drivers.