Netflix (NFLX) expects third-quarter revenue to reach $12.86 billion, below Wall Street estimates of $13 billion. Shares fell nearly 9% in after-hours trading on Thursday, July 16.
The guidance was overshadowed by second-quarter results that beat earnings estimates but missed revenue. Investors are weighing slowing subscriber growth against a mature streaming business in the back half of 2026.
Stocks are sliding toward a two-year low
Netflix shares closed Thursday’s regular session at $74.35, up 0.91%. The stock then fell 8.98% to $67.78 in after-hours trading once the guidance arrived, according to TradingView data.
The stock is down more than 21% year to date, and is down 41% in the past 12 months. It is far from the all-time high of around $133 set in June 2025.
The decline falls over a period of Bank earnings season Which really tested investors’ patience. Certificate of the Chairman of the Federal Reserve Bank On rates added to volatility this week. the Nasdaq and S&P 500 It has swung on similar earnings-driven swings this cycle.
Analysts see a mature growth story
PP Foresight Analyst Paolo Pescatore described Outlook as a “naturally maturing growth profile”. He said this did not indicate a deterioration in business, but added that Netflix now had less room for error given continued high expectations.
Netflix also said it would reduce viewing hours Report once a yearstarting in January 2027. The company wants to continue focusing on revenue and operating profits.
The company reiterated its plans to nearly double annual advertising revenue to $3 billion. Participation also grew by 2% in the first half of 2026.
Netflix reports third-quarter results on October 20. Investors will be watching whether advertising and live events can offset slowing subscriber gains.
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