Netflix shares slide 9.2% on weak forecast

• Netflix shares fell 9.2% before Friday’s opening bell after the company issued another below-consensus quarterly forecast.
• At least 11 analysts lowered their price targets as concerns grew about slower subscriber and revenue growth.
• Netflix is using advertising, live programming, content investment and price increases to support future growth.

Netflix (NASDAQ:NFLX) shares fell 9.2% before Friday’s opening bell after its third-quarter revenue and earnings forecasts missed analyst estimates.

The company forecast Q3 revenue of $12.86 billion and EPS of $0.82, below estimates of $13 billion and $0.84.

“The story lacks excitement,” said Pivotal Research Group Analyst Jeffrey Wlodarczak.

At least 11 analysts reduced their price targets, while Netflix will publish its viewing-hours report annually instead of twice yearly from January 2027.

Following the announcement, Netflix's share price was down 9.2% at about $67.51 before the bell.

Netflix is expanding advertising, live programming and games while using price increases to generate more revenue from each customer.

Netflix traded at 19.92 times forward earnings, compared with Walt Disney (NYSE:DIS) at 13.54 and Comcast (NASDAQ:CMCSA) at 6.57.