NFLX stock drops 8% following weaker-than-expected Q3 guidance and decision to stop reporting subscriber engagement metrics.
Netflix shares fell sharply Friday after the streaming giant reported mixed second-quarter earnings and issued softer-than-anticipated guidance for the current quarter. The company also announced plans to reduce transparency by discontinuing regular reports on subscriber engagement metrics, disappointing investors seeking clearer growth signals.
Analysts had expected stronger performance following Netflix’s recent price hikes and crackdown on password sharing. The Q3 revenue outlook fell short of consensus estimates, while the decision to withhold engagement data marks the second disclosure pullback in recent months. The stock had been attempting to stabilize after a volatile 2025.
The sell-off contributed to broader market weakness, with the Nasdaq and Dow Jones both posting losses for the session. Tech stocks led declines as investors reassessed growth expectations across the sector.