Netflix Stock Drops After a Disappointing Outlook
Netflix Stock Drops After a Disappointing Outlook
Aaron McDadeWed, October 21, 2026 at 3:00 PM UTC
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With Wednesday’s slide, Netflix shares have lost 30% of their value since the year began.Credit: Michael Yanow / NurPhoto / Getty ImagesKey Takeaways -
Netflix’s fourth-quarter forecast disappointed, sending shares lower Wednesday.
The stock has slumped in recent months amid worries about slowing revenue growth.
Netflix shares are tumbling after a weaker-than-expected forecast.
Shares of Netflix (NFLX) were down nearly 5% in recent trading, extending their recent slump. It was the biggest decliner in the Nasdaq Wednesday, a day after the streaming giant issued a fourth-quarter outlook that missed analysts’ projections.
Netflix said it expects earnings per share of 67 cents on $13.44 billion in revenue in the current quarter, each metric coming in below the consensus of analysts surveyed by Visible Alpha. Executives pointed to a shortfall in advertising sales tied to a longer rollout of certain ad formats, and headwinds from recent layoffs.
Analysts at Deutsche Bank told clients in a note Wednesday that they found the market’s reaction “overly punitive,” and that they would view it as an opportunity to “buy the dip.”
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“This is unrelated to the core concerns many investors have about the business (i.e. declines in US time spent and a less successful content slate) and we view it as an operational delay, rather than a change in the fundamental trajectory of advertising revenue growth,” they wrote.
Netflix reported EPS of 87 cents on $12.87 billion in revenue in the third quarter, while analysts had forecast EPS of 82 cents on revenue of $12.88 billion.
With Wednesday’s slide, Netflix shares have lost 30% of their value since the year began.
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Source: “AOL Money”
