Netflix Shares Plummet as Analysts Urge Focus on Long-term Vision
WHO:
Yahoo Finance - Jessica Reif Ehrlich, senior media analyst at Bank of America Global Securities
Fortune - Eric Clark, portfolio manager of the LOGO ETF and CIO at Accuvest Global Advisors
Fortune - Spencer Adam Neumann, CFO of Netflix
Fortune - Ted Sarandos, co-CEO of Netflix
Fortune - Alicia Reese, SVP of Equity Research at Wedbush
WHAT:
Yahoo Finance - Netflix's stock has lost roughly 46% over the past 12 months, including a significant drop following the earnings report.
Fortune - Netflix shares closed at $74.35, down roughly 44% from their June 2025 all-time high, and fell another 8% to 9% in after-hours trading after the earnings report.
Fortune - Netflix's CFO stated that the company has penetrated less than 45% of its roughly 800 million addressable households worldwide and accounts for only about 5% of global TV viewing.
Fortune - Alicia Reese from Wedbush stated that Netflix's ad revenue could roughly double to about $3 billion in 2026.
Yahoo Finance - Netflix stock plunged at the opening bell following a second quarter earnings report.
Yahoo Finance - Netflix's third quarter revenue outlook missed expectations.
Yahoo Finance - Netflix stock has lost roughly 46% over the past 12 months.
Fortune - Netflix reported Q2 revenue of $12.56 billion, up 13% year over year but below the consensus estimate of $12.58 billion.
Fortune - Netflix posted an operating margin of 33.4%, down from 34.1% in the previous year.
Fortune - Netflix forecasts Q3 revenue of $12.86 billion, slightly below Wall Street expectations of roughly $13 billion.
Fortune - Netflix updated its full-year revenue forecast to between $51 billion and $51.4 billion.
Fortune - Netflix repurchased about $4.7 billion of stock during the quarter, its largest quarterly buyback on record.
Fortune - Netflix expects to spend up to $20 billion on content this year.
WHERE:
Yahoo Finance - Netflix's earnings report was discussed in the context of Wall Street's reaction.
Fortune - Netflix's financial performance was analyzed in the context of its global market presence.
WHEN:
Yahoo Finance - Netflix's earnings report was released on a Thursday.
Fortune - New publisher short-form deals are launching on August 3.
WHY:
Yahoo Finance - Analysts expressed concerns over Netflix's growth and engagement trends.
Fortune - Analysts believe the market may be overlooking Netflix's long-term growth potential despite current challenges.
HOW:
Fortune - Netflix's co-CEO Ted Sarandos mentioned that the documentary "The American Experiment" included 17 minutes of AI-enhanced footage that was produced "twice as fast and at half the cost."
Yahoo Finance - Netflix plans to publish its "Watch We Watched" report annually instead of semiannually.
Fortune - Netflix's CFO stated the company is not managing the business on a quarter-to-quarter basis, aiming for sustained revenue and profit growth.
(UPDATED July 18, 2026 13:20 UTC)
Netflix's stock has taken a significant hit, losing about 46% over the past year, with shares closing at $74.35, down roughly 44% from their all-time high in June 2025, and falling an additional 8% to 9% in after-hours trading following the latest earnings report. The company's CFO revealed that Netflix has penetrated less than 45% of its approximately 800 million addressable households worldwide and only accounts for about 5% of global TV viewing. In a positive note, Alicia Reese from Wedbush projected that Netflix's ad revenue could roughly double to about $3 billion in 2026, while co-CEO Ted Sarandos highlighted that their documentary "The American Experiment" featured 17 minutes of AI-enhanced footage produced "twice as fast and at half the cost."
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(UPDATED July 18, 2026 10:21 UTC)
Netflix's stock took a significant hit at the opening bell following its second quarter earnings report, which revealed a revenue of $12.56 billion, slightly below expectations. The company also forecasted third quarter revenue of $12.86 billion, falling short of Wall Street's $13 billion target, while its stock has plummeted approximately 46% over the past year. Despite these challenges, Netflix plans to spend up to $20 billion on content this year and will shift to an annual publication of its "Watch We Watched" report to better reflect its long-term growth strategy.