NFLX stock falls 7% post-earnings as revenue and forward outlook trail estimates despite EPS beat.
Netflix reported second-quarter earnings per share above Wall Street expectations, but revenue of $8.2 billion missed forecasts and forward guidance disappointed investors. The company’s stock dropped 7% following the release, deepening a 48% decline from its 2023 peak.
The streaming giant, which leads the industry with 325 million subscribers, faces intensifying competition from rivals like Amazon Prime and Warner Bros. Discovery. Netflix recently introduced a $8.99 ad-supported tier to attract cost-conscious users, while ad-free plans remain priced at $19.99 and $26.99.
Investor sentiment has also been pressured by the departure of co-founder Reed Hastings as board chairman, adding to concerns over long-term growth amid a crowded market.