Netflix shares tumble after weak Q3 outlook and heightened competition
Netflix's shares fell sharply in trading after the streaming giant issued a weaker-than-expected outlook for the upcoming quarter. According to The Motley Fool, the stock had already slipped about 43% from its recent peak as subscriber engagement waned and competition from Paramount, Disney, Fox and Roku intensified. Variety reported that the company posted second-quarter revenue of $12. 56 billion and earnings of 80 cents per share, matching forecasts, but projected slower growth for the third quarter, sending the shares down roughly 9% in after-hours trading.
Deadline added that the earnings report showed revenue just below expectations and modest growth in viewing hours, contributing to a 9% post-earnings dip. Fortune noted that the decline pushed the shares to a 52-week low, while analysts pointed to a large untapped market and a recent share buyback as potential positives. Yahoo Finance said the stock plunged more than 10% in early trading as investors reacted to the disappointing Q3 outlook.
