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Shares Fall After Mixed Report
Deadline • • general
Key Points:
- Netflix shares fell 9% in after-hours trading following its second-quarter earnings report, adding to a nearly 45% decline over the past year.
- The company reported revenue of $12.56 billion, slightly below Wall Street expectations, and earnings of 80 cents per share, narrowly beating forecasts by a penny.
- Netflix's viewership rose 2% year-over-year to 97 billion hours in the first half of 2026, but concerns persist over declining engagement compared to competitors like YouTube and TikTok.
- The company acknowledged the need to improve engagement quality, variety, and quantity, highlighting that not all viewing hours carry equal value.
- Netflix projects 12% revenue growth in Q3 and aims to double its ad revenue to $3 billion in 2026, but shares remain near an 18-month low amid skepticism about its growth prospects and competitive challenges.
