Updated
Updated · Bloomberg · Jul 16
Netflix Shares Drop 9% After $12.9 Billion Revenue Forecast Misses Estimates
Updated
Updated · Bloomberg · Jul 16

Netflix Shares Drop 9% After $12.9 Billion Revenue Forecast Misses Estimates

3 articles · Updated · Bloomberg · Jul 16

Summary

  • Netflix projected current-quarter revenue of $12.9 billion and earnings of 82 cents a share, both slightly below analysts’ expectations, sending the stock down 9% after hours.
  • The weak outlook points to a second straight quarter of slowing sales growth, deepening investor concern about the streaming company’s momentum.
  • Netflix is responding by expanding programming and AI tools across production, after disclosing that about 300 programs used generative AI this year.
  • That push comes as the company tries to revive confidence after the stock had already fallen more than 40% over the past year.

Insights

Netflix is spending billions on new content and ads, but can it actually reignite its slowing growth?
With its stock down 45%, is Netflix a massive bargain or a classic value trap for investors?
As YouTube's viewership soars, is Netflix's costly bet on live sports enough to reclaim its dominance?