Changes in US stocks | Q3 guidance falls short of expectations, Netflix (NFLX.US) opened and fell more than 10%

Zhitongcaijing · 1d ago

The Zhitong Finance App learned that on Friday, Netflix (NFLX.US) opened with a sharp drop of more than 10%, the biggest drop since April 2022, and is now reported at $66.19. According to the news, Netflix released its second-quarter earnings report after the market on Thursday EST. Netflix's Q2 revenue was US$12.6 billion, up 13% year over year, with earnings of 80 cents per share, which is basically in line with average market expectations. Revenue growth is expected to slow for the second consecutive quarter in the third quarter, further increasing investors' concerns about the streaming giant's future prospects. The company expects revenue of $12.9 billion and earnings per share of $0.82 for the quarter, all slightly lower than analysts' expectations.

Over the past year, Netflix's cumulative decline has exceeded 40%. The company's pursuit of the acquisition of Warner Bros. US (WBD.US) and subsequent financial performance have made investors increasingly worried that the streaming media leader has lost momentum for growth. Chief Financial Officer Spencer Neumann (Spencer Neumann) said during an analyst call: “We don't manage the business on a quarterly basis.” He pointed out that Netflix currently only covers about 45% of the market it can serve, accounting for only 5% of the global TV viewing time, and said that the company will increase its revenue by 6 billion US dollars this year.