Netflix shares tumble as Q3 revenue outlook falls short of expectations

Netflix reported second‑quarter revenue of $12.56 billion and earnings per share of $0.80, marginally beating analyst estimates. However, the company forecast third‑quarter revenue of $12.86 billion, below the consensus of roughly $13 billion, and announced that its “What We Watched” viewer‑data reports will shift from semi‑annual to annual releases. The weaker guidance sent the stock down more than 8% since the earnings announcement, leaving it near $67‑68 and off 28% from its one‑year high.

Analysts responded with lower price targets, but several market commentators called the dip a buying opportunity. Bankinter maintained a $109 price target, citing advertising growth; Jim Cramer described the shares as the cheapest they have been since 2022; and Motley Fool pieces highlighted a large addressable‑household market and potential gains from live sports and creator content. Despite these optimistic angles, investors remain cautious about slowed growth and reduced transparency.

Overall, Netflix’s performance underscores a transitional phase where revenue growth is moderating, cost discipline remains, and the company is seeking new growth levers while navigating a more bearish market sentiment.